Better weather in the US saw corn and soybean futures fall sharply in overnight trade. Both of these grains rallied last week on the back of thoughts El Nino would bring a hot dry summer to the USA. At the moment the weather map keeps tipping a continuation of the current, all most ideal, weather pattern for US row crops.
Weaker crude oil prices and a higher US dollar done nothing to help values at Chicago.
Wheat found little support from US or International markets. As the headers move north into Kansas the yields are still coming in as better than expected. Quality is a little worse than normal after a soft finish but with HRW priced into most feed rations now this is probably not a bad thing and will help chew through the stocks a little quicker. Weekly US wheat export sales were supportive but couldn’t slow the selling at Chicago. Spring wheat futures at Minneapolis found support from lower quality in the HRW crop.
Rainfall predictions for the far north of the USA and across the Canadian durum belt are less than ideal for the next two weeks.

Strategie Grains are the latest EU analyst to reduce wheat production estimates in France and Germany. 1.3mt was cut from the two countries in the report. They also warned of a slip in quality and that disease is now becoming a big concern as wet weather persists across much of western Europe. At this stage the central and northern parts of France appear worse and durum less affected.