Ok everyone jump back on the soybean bus, the rides not finished yet. Overnight Chicago beans were up 25c/bu. Futures volume on the night was also up around 25% on the previous session. The weekly US drought monitor had some shading in parts of the corn / soybean belt that surprised a few punters. Combine these dry spot with some good export sales to China and US soybeans were heading back in the right direction…..for now. http://droughtmonitor.unl.edu/
Hot dry weather in the HRW belt should help harvest progress quickly next week but may also keep the weather punters out in force in beans and corn. As long as there is support in the row crops it should at least limit losses in wheat futures.

It continues to rain across much of central Europe. Yields in the EU continue to climb but at the expense of quality, at least in wheat. As wheat harvest picks up in coming weeks we may see spreads to the higher grades start to increase.
Spain has been the main reason over the last few weeks that EU production estimates have been increasing. With 7.26mt of wheat now predicted to be harvested and 10.3mt of barley we see Spanish production some 30% above last year.

Saudi Arabia and Algerian tender business should be announced over this weekend and Egypt is expected to buy again soon.