There’s a USDA world ag supply and demand report due out tonight, so don’t expect to see too many big moves from the punters out there today.
Technically we see Chicago SRW and HRW futures still a little over bought but generally trending towards neutral, that’s a good place to be prior to a WASDE hitting the market. This time of year wheat is unlikely to see any big moves on the supply side with both northern and southern hemisphere crops now in the bin. There’s potential for some downside in Argentine wheat production but there is plausibly some upside potential in Australian wheat production numbers too. I wouldn’t be surprised if one moves it is countered by an opposite move in the other. There is also the chance of a little tweak higher in Asian demand and EU exports.
Corn and soybean futures at Chicago are both still over bought. The punters have been happy with their long position in the US row crops for a few weeks now and unless we see some big corrections to S.American production (higher, unlikely) there’s probably no reason to change this sentiment. Chinese demand is strong, this is more likely to be adjusted higher than lower. So basically the punters are bullish, any news in the WASDE contrary to this would be considered very bearish and could trigger some heavy selling.
ICE canola futures were sharply higher overnight.  Locally we saw ICE / canola basis fall yesterday as the trade failed to keep up with ICE futures. Given another sharp jump overnight we may well see basis here continue to push lower even if cash bids do rally.
Sorghum offers out of the US continue to push higher, now at US$317 FOB Texas, I won’t even bother with a NTL comparison, to depressing.