US wheat futures slipped away on Monday night, eroding more than half of last weeks gains in just one session. Lower corn and soybean futures wont help. We also have a stronger AUD against the US dollar compounding the move when converting it all to AUD / tonne this morning.
Market wires tend to suggest the catalyst for the change was the week on week reduction in US wheat sales and export volume. At 291kt weekly US export inspections were back 47.52% week on week. So may have a bit to do with the downside in wheat futures in the US. Looking at corn and soybean export inspection we see soybean at 547kt, up 246kt on last week, and corn at 1.657mt, also higher than last week. We can’t really blame poor exports for the softer close in beans and corn.
International futures market followed US wheat futures lower with both London feed wheat and Paris milling wheat shedding value. Paris milling wheat was back €2.50 / tonne in the December slot. Cash values for both US and Canadian spring wheat out of the Pacific Northwest also slipped lower, widening the gap in value between US and Aussie wheat back to where it had been a week and half ago. Unless Aussie values follow they will continue to see comparison pressure. The question is why is there a comparison between Aussie white wheat and US red wheat anyway. White wheat has a better extraction rate and is more millable in most instances and has traditionally drawn at least a AUD$25.00 premium to US red wheat.

The US weekly crop progress report was out after the close. Corn is at 97% sown, with Kentucky, Michigan, N.Dakota, Pennsylvania, Tennessee and Ohio the main states lagging progress. Ohio the only state of significance in that line up. The US national corn condition rating improved 2pts, to 58/13-71% G/E. Soybeans were pegged at 90% sown and improved 1pt to 68% G/E. Sorghum came in at 54% sown (61% 5 yr avg), Kansas and Nebraska lagging behind. Winter wheat harvest moved along slowly to just 4% (7% avg), G/E rating improved 2pts to 54%. Spring wheat rating was up 3pts to 53% (72% LY).