US soybean futures were smashed again in overnight trade. Canola futures at the ICE didn’t escape and closed almost $20 lower on the night. The funds started heading for the door in the soybean pit early this week and with every good weather map that came out for the US this week more and more punters began to liquidate their long positions. Wheat and to some degree corn continue to get dragged lower but in reality neither wheat nor corn have anything bullish about them either.

There’s probably a good chance the US markets will end up getting over sold at some stage, to what level is anyone’s guess. We were down around these levels for corn back in 2014 during the US corn harvest in September but prior to that we hadn’t been down around 330c/bu since June 2010 and then September 2009 and August 2009. So basically looking at historical data you might see a trend appearing. That is big crops tend to set their low in August, September.

In Europe there’s continued speculation about the quality of the crop but we’ll know for sure before the end of the month. The Black Sea states saw some rain after a mostly hot, dry week. The heat was good for winter wheat, ripening the crop quickly while the rain is seen as generally beneficial for the spring wheat crop which is looking pretty good at present.