AWB market update

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A tight balance sheet for US wheat forcing it out of feed rations in the fourth quarter of 2013 replacing it with corn. Strong gains were seen in the Chicago wheat/corn spreads. France's harvest is now 30% complete vs. 14% last week and 53 % at this time last year. Reports indicate that protein levels are down on the French crop. Chicago wheat FOB offers were up sharply indicating increased demand from world buyers, specifically China. Chicago wheat for Sept 2013 is 2½ cents higher at 660½ US cents a bushel Corn futures traded lower last night. The weather conditions still look favourable in the USA to finish off the crop. South Korea has issued a tender for 140,000 for delivery January. SE Asian millers were active buyers of Black Sea and South American corn at discounted prices to the US. Ethanol producers are shutting their plants for maintenance in readiness for bumper new crop. US farmers are selling last season's crop in readiness for a large new season crop. Chicago corn for Sept 2013 is 11½ cents lower at 476 US cents a bushel Canola continued the gains from that last few days. Canola contracts were up on Friday, with speculative short- covering and end user demand propping up the market. With the Canadian dollar slightly lower before the weekend, prices were supported a little further as well. Traders were positioning ahead of a long weekend in Canada. Winnipeg Canola for Nov 2013 is $4.20 higher at $493.60 Canadian dollars per tonne. The Australian dollar is currently trading at 0.8909 USD.

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