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Wheat futures were traded higher yesterday.

The USDA report is finally out with global wheat production raised up to 705.35 million tonnes, consumption also rose with stocks tightening. Some of the biggest production increases were the EU up 2.8 million tonnes, Kazakhstan up 2.5 million tonnes and Ukraine up 2.0 million tonnes.

The Russian forecast was decreased by 90,000 tonnes from July and reports that it could be closer to 50 million tonnes as against the USDA forecast of 54 million tonnes. Imports by China rose to 9.5 million tonnes up from 8.4 million tonnes.

Chicago wheat for Sept 2013 is 1 ½ cents higher at 635 US cents a bushel.

Corn futures traded higher last night. The USDA report for corn was bullish with stocks at 1.971 billion bushels down from 1.959 billion bushels in July. Argentinian crop was unchanged at 27 million tonnes as was the Brazilian crop which is estimated at 72 million tonnes. Mexico reported a sale of US wheat for 252,153 tonnes which is positive for market direction.

Chicago corn for Sept 2013 is 6 1/4 cents higher at 472.00 US cents a bushel.

Traders are eying the USDA production report due out Monday. The strength in the Canadian Dollar contributed to a weaker tone in Canola. This strength in currency is also eating in crush margins. There is still some long term concern on frost damage to the crop due to the lateness of the harvest.

Winnipeg Canola for Nov 2013 is $10.20 higher at 493.90 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9112USD.

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