There’s a lot of red on the screen for international grain futures this morning. Chicago corn, soft red winter wheat closed a smidge lower while the higher protein milling wheat grades were a smidge higher. London feed wheat, Paris milling wheat and Paris corn futures all closed lower. Paris milling wheat shed €3.75 / tonne nearby and €3.00 / tonne in the December slot.
Oilseeds bucked the trend in cereals and coarse grain. Chicago soybeans closed 15.75c/bu (AUD$9.20/t) better nearby and 13.25c/bu higher in the Jan26 slot. The strength in soybean futures was found from expectations of fewer sown acres in the US this season, it’s a futures market after all. There was little support from the non speculative fundamentals. US weekly bean exports were not great, coming in at the low end of trade estimates prior to the release of the report. The strength in beans did help keep the recovery in canola and rapeseed futures chugging along, both closing with some nice day to day gains. Palm oil wasn’t to be left out, closing 74MYR/t higher nearby, +AUD$26.48/t.
With private estimates of the Brazilian crop improving I’m not sure if lower US acres and a possible year to year decline in Canadian canola area is going to be enough to push canola values through current resistance levels prior to sowing canola here.

International cash wheat values were generally lower. US PNW values were mostly lower, the small moves up in US$/tonne were countered by the stronger AUD in most instances. Canadian values were sharply lower, shedding roughly AUD$5.17/t compared to yesterdays conversion. This reduction makes Canadian spring wheat out of the PNW and US spring wheat out of the PNW closer, but US values are still some AUD$15.00 under Canadian. Aussie H2 is roughly AUD$20.00 higher than US HRWW into the Asian market. This is about right given the white wheat vs red wheat milling characteristics. It also tells us that in order to see an improvement in local export values we need to see an improvement in international values for milling wheat.