AWB market update
Wheat futures were traded lower yesterday. Sales continue to be made by the US into Brazil. The US however is continually being thwarted in other export markets by cheap wheat out of the Black Sea, France and Australia.
The forecast for the French wheat production is 36.1 million tonnes up from a forecast of 35.5 million tonnes last year. The Russian crop is expected to be lower due extreme heat and rainfall expected in key growing areas. Chicago wheat for Sept 2013 is 7 ¾ cents lower at 633 ½ US cents a bushel.
Corn futures traded lower last night. Volume trade was light ahead of the USDA report due out on Monday. Wheat vs. corn spreads is at historically high levels as new export levels are trending above the five year average. China has indicated that they will import about 5.5 mill t in 13/14.
Chicago corn for Sept 2013 is 7 ¾ cents lower at 465 ¾ 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. Favourable weather is continuing across western Canada, but there is still some concern for frost damage.
Winnipeg Canola for Nov 2013 is $1.80 lower at 483.70 Canadian dollars per tonne.
The Australian dollar is currently trading at 0.9193USD.
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