AWB market update

Wheat finished marginally lower on Friday night, limiting the overall gains of the week to just four cents.

Data released by Statistics Canada brought a negative tone to the market, as Canada expects a record 33 million tonnes in wheat production this season.

Elsewhere the Ukrainian government is suggesting that further reductions to production estimates may be in order due to heavy rains over planting, and India's recent US $300/t tender to offer received a lukewarm response on the global market.

Chicago wheat for Dec 2013 is 2 ¼ cents lower at 687 US cents a bushel.

Corn, in contrast to CBOT wheat, closed higher on Friday night, but lower for the week overall. Some of Friday's strength comes from the more optimistic long term view of corn being priced at a discount to wheat, as it is currently, particularly given that some organisations are raising their production estimates following reports of better than expected yields.

Chicago corn for Dec 2013 is 4 cents higher at 443 ¼ US cents a bushel.

Canola was unable to maintain the momentum of last week through to Friday night's closing bell, posting a loss for the day as European Matif futures also lost ground after the rally. Despite expectations for an even more dramatic estimate, reports from Statistics Canada predict a 15.963 million tonne crop, which, unsurprisingly, weighed on prices.

Winnipeg canola for Nov 2013 is $6.60 lower at $477.60 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9438 USD.