US wheat futures stabilised overnight with soft red winter wheat futures leading grains higher. Soybean and corn futures at Chicago were generally flat to a couple of cents per bushel higher nearby while outer month soybeans saw a little downside. Minneapolis spring wheat futures were a little lower by the close but only by a couple of cents a bushel which in Aussie dollar terms equates to about $1.30 / tonne.
The big mover of the night was Paris rapeseed futures. With the February contract closing out this month, sharp loses were noted on the nearby contract, down €11.75 / tonne. The May contract was softer but only by €3.50 / tonne while further out the fall was even less. The oilseed market is stumbling a little with the Asian Lunar New Year holidays reducing liquidity.
Further deterioration of the Kansas wheat crop, according to the latest USDA report, should continue to assist wheat futures at least stabilise around these numbers. As the US attempts to clear old crop wheat we may see price volatility increase as it’s torn between much lower acres for 2017 and the huge world carryover stocks of 2016.
Durum prices in Saskatchewan slipped a little with prices now sitting around C$275 / tonne up country. Roughly this would equate to about AUD$379 at the port of Newcastle. CWAD1 at 13.5% protein saw a premium of C$1.15 / tonne while lower protein CWAD1 was not quoted. Lower grade durum with much less vitreous was noted at -C$35.63 /tonne @ 12.5% protein.