Wheat and corn futures in the US were sharply lower again last night. Soybeans found some buying interest and closed in the black while both Paris rapeseed and Winnipeg canola closed in completely opposite directions. Paris rapeseed shed E18.75 on the nearby contract while Winnipeg put on C$34.50. That’ll keep them guessing on Monday. Unfortunately, Paris milling wheat following the lead from the US markets and shed E5.25 on the nearby contract.
US corn futures continue to come under pressure from slower than expected exports and the prospect of some big acres in Brazil. The main wild card remains the production potential of Argentina which continues to suffer from drought conditions across much of Cordoba and Santa Fe. Combine the dry weather there with temperatures now pushing into the mid 30’s on a daily basis and the forecast of some 40 degree days next week and the prospect of a large Argentine corn plant is starting to look remote.

US wheat futures continue to move against the general fundamental sentiment. The fund manager is in control. Further production reductions to the Canadian wheat crop from StatsCanada and reports the Buenos Aires Grain Exchange are suggesting there is more potential downside to the Argie number over the coming weeks must be considered bullish.
The StatsCanada data is based off both grower survey data and modelling. SaskAg numbers had been conflicting with StatsCan numbers all season, SaskAg estimating production lower, especially for durum. The lower estimate from StatsCanada yesterday addresses some of this with all wheat production reduced 876kt from their August estimate. The durum estimate was back 674kt to 5.443mt, indicating durum supply will be tight.