AWB market update

Wheat was higher in Chicago trading at last night's close.

Traders continue to square up short positions ahead of the USDA report due out on Thursday. There are still concerns over Brazilian production as frost damage to crops continues, it should also be noted that the Brazilian currency has appreciated against the US making US exports more attractive. Egypt has purchased 235,000 tonnes of wheat from Russia, Romania and the Ukraine.

Chicago wheat for Sept 2013 is 5 cents higher at 633 ¾ US cents a bushel.

Corn futures traded lower at last night's close. Corn remains under pressure as the harvest continues. Stiff competition from cheaper Brazilian and Argentinean supplies is also putting pressure on prices. There is talk in the market that China may approve Brazilian GM strains of corn and further more are expected to import up to 1 million tonnes of sorghum from the US.

Chicago corn for Sept 2013 is 2 ½ cents lower at 474 ¾ US cents a bushel.

Canola contracts closed slightly lower on Tuesday, prices are under pressure as the record harvest continues to advance rapidly. The Canadian dollar has also appreciated against the USD making canola less attractive to crushers and international buyers.

Winnipeg Canola for Nov 2013 is $2.80 lower at $496.20 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9303 USD.