US wheat futures were mixed but generally took a breather from yesterday’s sharp losses. Soft red winter wheat futures closer a smidge firmer, HRW was also a little firmer on the nearby but crept lower in the outer months. Spring wheat continued lower as did Chicago soybeans. The weaker soybean market pressured Winnipeg canola lower but the Paris rapeseed contract did not follow US bean futures lower. Rapeseed staged a slight recovery, clawing back E9.25 of yesterday’s losses. Milling wheat at Paris continued to drift lower, competing with cheaper wheat out of Russia. London feed wheat was also lower.

Cheaper Russian wheat was said to have been one of the major bearish influences on US wheat prices yesterday and was blamed as a major factor in the prior sessions sharply lower close. The reality appears to be that French wheat is the cheapest though, currently some US$20 cheaper than Russian wheat at the FOB seller port basis. This would make French wheat cheaper into, say the US market, than Russian wheat. Wouldn’t that be interesting though, to see Russian wheat being unloaded in the USA.

In search of some bullish news for wheat I can’t help but think the heavy rain and weather damaged wheat across China’s Henan province isn’t getting the traction it deserves. Heavy and often continuous rain over the last 14 days has taken its toll on this year wheat crop. Images are now appearing in both private and state-owned media of wheat black with mould and shot and sprung. Henan province accounts for around 25% of Chinas wheat crop. Initial reports estimate around 20mt of wheat has been badly affected across Henan and neighbouring provinces. This grain will make stock feed only.