AWB market update
Wheat began the day optimistically on Friday, but was unable to sustain the positive momentum, and eventually closed near the day's lows.
This was on the back on news that global demand looks to be met by the current expectations for world ending stocks, with some even suggesting that demand was potentially overstated. With the Australian harvest being talked up in Chicago presently, there has been some speculation that China will continue to be a strong buyer moving forward.
Chicago wheat for Sept 2013 is 14 cents lower at 627 ¾ US cents a bushel.
Corn was subject to a huge downward pitch to close out last week, as conditions continue to be ideal for development and as harvest proceeds without interruption across the US Corn Belt. Whilst there is some expectation that an FSA (US Farm Service Agency) report due for release this week will show a decrease in planted acres for corn, the market currently expects this to be a relatively small departure from current USDA figures.
Chicago corn for Sept 2013 is 29 cents lower at 450 US cents a bushel.
Canola was lower in Winnipeg at the end of last week as it chased the CBOT soybeans values down, breaking through the $500/tonne barrier and remaining there through to the bell. In addition to the spill-over from US oilseed markets, there was also a sentiment that gains last Thursday were overdone, and with an increase in farmer selling, with only stronger commercial demand offering any resistance to sinking values.
Winnipeg Canola for Nov 2013 is $4.60 lower at $499.40 Canadian dollars per tonne.
The Australian dollar is currently trading at 0.9351 USD.
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