US grain futures were generally a little lower overnight as the weather map continues to look good and weekly export sales were disappointing. We generally see the lowest US futures values some time in August. As harvest picks up in the row crops we may see some more competition from the physical market take control. The quality and quantity of the US spring wheat crop should also become more evident next week once a few showers clear and the hot dry weather continues helping harvest progress.

Heavy rain across Germany and the Baltic countries is expected to cause some downgrading of EU wheat again this year. France is expected to have much better quality than last year but further south we see the severe heat and dry of spring and early summer has taken its toll on yields and quality is not great in parts of Spain and Italy, there is also talk of some issues in Turkey.

Wheat yields in Russia are good, around 4% better than last year. Things are pointing to another record crop for Russia this year. As with most high yielding years there are some quality issues appearing with lower protein than last year being reported. Lifting of US sanctions may also see an increase in the Rubble, good news for all of us.
EU rapeseed is now estimated to be larger than last year. This news and the weaker soybean values are putting pressure on canola.