The punters were more concerned with what the USDA might do with corn and bean production in tonight’s USDA report than any physical fundamental news in last night’s markets. More good sales of US soybeans were reported overnight and Germany joined the list  of EU states cutting wheat production.
US bean sales came in at 2.79mt, well above the trade estimate but markets only managed a measly 5c/bu rally at the close.

StrategieGrains pulled 7.7mt of soft wheat out of their monthly EU update now estimating around 137.9mt will come out of western Europe this season.  France was pegged at 29.9mt, Germany back 1mt to 25mt. There are also some quality issues immerging in Germany and Poland but at the moment they don’t appear to be as bad as the issues experienced in France.
The UK appear to be in the box seat to take advantage of the lower French and German crops. The UK will have around 1.8 – 2.2mt of exportable surplus in 2016-17 and the weaker pound is also helping their prospects. Quality is also better than usual in the UK.

The Ukraine wheat harvest is winding up with harvested grain now around 25.66mt. Russia is about half way through with 49.7mt of wheat in the bin so far, so it’s going to be a big one.