International cash wheat values were generally pretty flat last night. Black Sea values moved higher, which offered support to the major exporters. On average Black Sea values were AUD$4.00 to AUD$5.00 higher day to day when considering the weaker AUD. French values were mixed, some lower, some higher. Paris milling wheat futures were up €1.25 / tonne in the Dec slot but FOB cash was lower by a similar amount FOB Rouen. All three US primary grade wheat futures contracts closed higher, Kansas and Minneapolis unconvincingly so, Chicago, well not much better.
EU wheat exports continue to be slow. Understandable given the EU wheat crop was well back on the average.
Asian consumers remain hand to mouth buyers, S.Korea picking up 26kt of US milling wheat and Japan in for it’s weekly purchase of 115kt of US, Canadian or Aussie milling wheat. The move in US wheat values out of the PNW were minimal once converted to AUD per tonne, moving less than a dollar higher.

Flooding continues to be a problem across the SE of Brazil. Rainfall has eased a little across Rio Grande Do Sul and Santa Catarina, the former seeing just 25-100mm of rain last week. The forecast is not looking good though. The week ahead could see falls of 25-200mm of rain across the region. Heavier falls are predicted across the border region of the two states. It will be interesting to see what adjustments, if any, the USDA make to both Brazilian wheat production and import demand in this weeks World Ag Supply and Demand Estimates report due out Friday night.

Some light showers are expected across the drier parts of Russia and Ukraine over the next 7 days. Much of the Volga Valley in Russia may miss out though. The Volga region is all but out of time to complete sowing this years winter wheat. The Volga region is responsible for approximately 16% of Russian winter wheat production. The Southern and Caucasus region is also very dry, those two regions account for more than 50% of Russian winter wheat production.