AWB market update

Wheat was down again in Chicago trading overnight, once more following the bearish sentiments in the corn markets as spreads moved slightly wider between the two.

Futures continue to feel pressure as a result of China's absence as a grower, though there has been speculation that this is due to Chinese demand potentially being directed toward wheat from France and Australia instead of the US.

Meanwhile, the Food and Agriculture Organisation of the United Nations have revised their world wheat production expectation for the season to 710 million tonnes, a record high.

Chicago wheat for Sept 2013 is 7 cents lower at 627¼ US cents a bushel.

Corn futures traded lower in yesterday's session, with reports of traders opting out of corn and into soybeans instead. As the US harvest gains pace, yields are looking promising, and the crop itself is less vulnerable to adverse weather.

Ethanol production figures came in at 5.73 million barrels, down 0.12% from last week and 1.2% down from this time last year. Usage levels are continuing to disappoint, falling below the target levels required to hit current USDA forecasts.

Chicago corn for Sept 2013 is 4½ cents lower at 489½ US cents a bushel.

Canola was dramatically lower overnight, taking heavy hits in Winnipeg trading as speculative selling and the bearish crop outlook took their toll.

As the weather forecasts strengthen confidence for supportive conditions, the pre-harvest expectations are looking more and more in line with a record sized canola crop, and with CBOT soyoil losing ground overnight as well, the selling atmosphere was entrenched in Canada.

Some support did come as CBOT soybeans made slight gains by the bell, and slower export and crush plant pricing limited declines as well.

Winnipeg Canola for Nov 2013 is $8.20 lower at $508.80 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9132 USD.