Futures in the US reflected a combination of the weaker US dollar and some weather premiums for wheat and better demand for soybeans.
US weekly export sales for corn were towards the higher end of the trade estimate and well above the previous week at 764kt. Corn shipments were also strong at 1.35mt, keeping the USDA target well in sight.
The soybean pit found fuel from another US sale to an unknown buyer, probably China, of 100kt. Strength in S.American currencies and weakness in the US dollar is key to this ongoing Chinese demand apparently.
As with the row crops US wheat futures found support from a weaker USD but also from a hotter forecast for the southern plains. I’d discount the weather side of that as it’s been in the mid to high 30s across the HRW belt for the last week now. It’s not exactly out of the ordinary for Texas to be that hot this time of year and with harvest in full swing it will only help. Further north in Kansas, where the crop is still trying to fill, temperatures have been 1-2C above normal but are expected to climb into the high 30s and low 40Cs next week, some 5-7C above normal.
Farmer sales across the US plains have been slow and basis on wheat continues to climb in an attempt to find volume. Next week is the last week of the old crop wheat marketing year in the USA and it appears they will fall just under the USDA prediction.
In Canada cash bids for spring wheat, durum and canola were all higher. Spring wheat has clawed back much of the fall from earlier in the week while durum remains mostly flat to firmer. Cash bids for canola rallied C$5.53 for a December pickup.