AWB market update
Wheat followed corn in trading yesterday, making solid gains as concerns over conditions for the US corn crop brought values higher.
Elsewhere, predictions from analysts and consultants puts both the Canadian and French crops at the highest levels seen for many years, the Ukraine is increasing its export forecasts and the German harvest is expected to finalise soon with solid reports of both yield and crop condition.
Russia lost some footing overnight, as more temperamental weather at the end of last week reportedly resulted in prices rising and becoming less competitive in the Middle East.
Chicago wheat for Sept 2013 is 10½ cents higher at 641½ US cents a bushel.
Corn was a powerful leader in trading overnight, surging higher on continuing concerns about the hot, dry conditions forecast to continue in the US Corn Belt. Whilst these conditions had been previously raised, it now looks to the market as though the potential impact on crops had been undervalued, and this is particularly the case after potential rains after the weekend failed to materialise, prompting further expectations of crop stress. Gains were limited by less than impressive export volumes.
Chicago corn for Sept 2013 is 19½ cents higher at 493¼ US cents a bushel.
Canola made some very impressive ground yesterday, despite the Canadian crop being in good shape at the moment, largely following the trends of CBOT soybeans. This trend was triggered, much as with corn, by the warm, dry conditions currently expected to remain active for the next five days at least in the US. Limiting the gains by canola were reports from Statistics Canada, which reported that the crop would be well above levels from last year.
Winnipeg Canola for Nov 2013 is $17.20 higher at $517.80 Canadian dollars per tonne.
The Australian dollar is currently trading at 0.9123 USD.
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