AWB market update

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

Good demand from importers continues, however an abundant wheat supply and continued cheap wheat from the Black Sea area continues to keep downward pressure on prices. India is also looking to export close to two million tonnes from government warehouses.

Chicago wheat for Sept 2013 is 1 ¼ cents higher at 635.00 US cents a bushel.

Corn futures traded lower at last night's close. Trade levels were light as the market positioned itself ahead of the USDA report. China is expecting a record crop and the favourable supplies from Brazil, Argentine and the Ukraine are all putting a potential downside on prices. Ethanol demand will see a nice rebound from the 2012/2013 levels with 2013/2014 estimated at 4.9 million barrels.

Chicago corn for Sept 2013 is 5 cents higher at 479 ¾ US cents a bushel.

Canola contracts closed slightly higher on Wednesday, as buyers remain cautious ahead of the USDA report's release on Thursday. The appreciating Canadian dollar weighed on prices as it eats in to crush margins and makes transactions more expensive for International buyers.

Winnipeg Canola for Nov 2013 is $0.70 lower at $496.90 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9318 USD.