AWB market update

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Wheat futures were traded lower yesterday. Ahead of the USDA report on Monday traders continued to unwind long wheat vs. corn spreads. Some impressive sales overnight with Japan purchasing 175,277t of food wheat from the USA, Canada and Australia.

The demand for high protein and milling quality wheat is a big influence on the market.

Chicago wheat for Sept 2013 is 2 ¼ cents Lower at 641 ¼ US cents a bushel.

Corn futures traded higher last night. The trading range was narrow ahead of Mondays USDA report. Cash markets in the US south east are softer as feeders wait for cheaper new season crop to hit the market.

A notable buyer last week was Japan. Cumulative sales as of the 1st August stand at 29 % of the USDA forecast for 2013/2014 versus a 5 year average of 20%.

Chicago corn for Sept 2013 is 5 ¼ cents Higher at 473 ½ US cents a bushel.

Solid demand from domestic Canadian crushers helped lift Canola prices. The strength in the Canadian dollar against the US dollar is limiting the gains in Canola. Concern over weather seems to be easing, with the forecasts turning warmer for the next week.

Winnipeg Canola for Nov 2013 is $7.30 higher at 485.50 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9102USD.

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