With US soybeans weaker overnight we see the ICE and Paris contracts for canola struggling to hold onto the previous sessions gains. Wednesday’s higher session did result in a significant volume of trade squaring in the futures markets, particularly in Paris. Much of the influence is considered technical with both contracts approaching expiry. It should also be pointed out that neither canola futures markets offer much in the way of carry once into the new crop months, with Paris around thirty Euro lower.

Algeria picked up 475kt of optional origin wheat yesterday valued between US$198 and US$202 / tonne C&F. Ethiopia also issued a tender for the supply of 720kt of wheat. It looks like all the bottom pickers are shopping this week with news that Saudi, Egypt and a couple of others are looking to buy. Black Sea origin and possibly NW European ports are expected to dominate these tenders although we may have seen American wheat work into Ethiopia in the past under a “trade assistance” type of deal.

Funds continued to rebalance books, in the case of US wheat we saw continued buying by the funds which has wheat firmer again today. The stronger AUD against a weaker greenback will not help talk up local values. The AUD is back over 73USC this morning but weaker against the Yen and Euro. The AUD was stronger against the Yuan and Indian rupee.