AWB market update

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

World production has been increased, according to the USDA report, by 3.51 million tonnes to make it the world's biggest crop ever. Australian production was left at 25.5 million tonnes and is thought to be on the high side. Wheat vs. corn spreads posted solid gains and moved back above +180 US cents per tonne level.

Chicago wheat for Sept 2013 is 6 ¾ cents higher at 641 ¾ US cents a bushel.

Corn futures traded lower at last night's close. The USDA report was bearish for corn with US ending stocks at 1.855 billion bushels, up from the August estimate of 1.837 billion bushels and with the yield revised up to 155.3 bushels per acre vs. 154.4 in August. Chinese imports were unchanged at 7 million tonnes.

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

Canola contracts closed higher last night. Canola prices were dragged up by a big increase in values for US soybeans, breaking the psychological barrier of $500 Canadian dollars per tonne.

The record large crop and expected good yields in Western Canada will put pressure on prices in the short to medium term.

Winnipeg Canola for Nov 2013 is $7.10 higher at $504.00 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9262 USD.