AWB market update

Wheat futures traded lower yesterday, following the trend set by corn, which was unable to maintain yesterday's positive momentum.

The market sentiment is that there's a lot of grain around the world, keeping the atmosphere bearish for the long-term as well as the short.

Russian wheat prices have risen slightly, with poor weather reported, though other European values are now feeling harvest pressure as grain begins to hit the markets in greater volumes.

Chicago wheat for Sept 2013 is 6¾ cents lower at 628¼ US cents a bushel.

Corn was unable to sustain its bullish charge following the release of the USDA report on Monday, losses traction over the day to not only give up Monday's gains, but to drop lower than prices had been at the close of last week.

The cause of this has been a widespread sense of doubt in the USDA figures released, partly due to "inconsistencies" in the calculation of ear weight by the government body. Whilst the weather for the US Midwest is looking a little drier over the next week, it is generally looking like warmer temperatures over the next fortnight, which will aid crop maturity.

Chicago corn for Sept 2013 is 16¾ cents lower at 455¼ US cents a bushel.

Canola futures moved higher overnight in Winnipeg, supported in this by positive movements on the part of Chicago soyoil. Adding further weight was a drop in value for the Canadian dollar, making crush and export markets more attractive, and some voiced concerns over cooler temperatures also leant a bullish tone to trading.

Working in the other direction, the Canadian Prairies are expecting warmed conditions later this week, and futures remain technically weak, with charts biased downwards.

Winnipeg Canola for Nov 2013 is $1.50 higher at $495.40 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9101 USD.