AWB market update

Wheat futures were down in Chicago overnight on pressure of technical selling and speculation that US wheat exports may offer disappointing figures given the lack of competitiveness relative to others in the market.

Kansas City sales continue to impress, with Brazil being the big buyer, extending an import tax waiver which it has been suggested is to encourage further sales. However China remains absent from the market, leaving Chicago overshadowed by Kansas City, and with the premium on US wheat relative to French and Black Sea supplies, the outlook for the time being looks grim.

Chicago wheat for Sept 2013 is 5¼ cents lower at 641¼ US cents a bushel.

Corn traded slightly lower for September, though December contracts were higher, during last night's session in Chicago.

The outlook at this point shows warm and dry conditions continuing through today, with the chance for some showers in some areas of the Corn Belt over the weekend. Export figures have been robust, with Mexico and Japan the major buyers. As the US dollar pushed slightly higher overnight some pressure was exerted on markets.

Chicago corn for Sept 2013 is 7 cents lower at 497¼ US cents a bushel.

Canola moved lower overnight, after a mixed session in Winnipeg. Factors putting on selling pressure included spill-over losses to Chicago soybeans and soyoil, looking a little more reliable with a less bullish weather outlook ahead.

These factors also spilled over to affect Malaysian palm oil and European rapeseed. However despite these overnight movements, and the ongoing expectation for a large Canadian crop, a weather premium remains a stabilising force in the market, with concerns for the possibility of an early frost enduring.

Winnipeg Canola for Nov 2013 is $1.30 lower at $526.10 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.8920 USD.