AWB market update

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Wheat was slightly down at last night's close as the EU wheat markets slid to a three week low on favourable supplies and bearish technical charts.

There are some quality problems with grain from the Black Sea, and premiums are being paid for higher quality grains. Planting is under way in the Northern Hemisphere for the 2014/15 season, and with plentiful rain in August/September this should see crop conditions greatly improve in the Western US and the Black Sea region.

Chicago wheat for Sept 2013 is ¼ cent lower at 641 ¼ US cents a bushel.

Corn was slightly lower at last night's close. The soybean versus corn spread was sharply lower. Potential rainfall predicted in the five day forecast may keep new farmer sales down for the next week. The lack of pre-sowing rain in Argentina may see growers switch to soybeans. Export inspections were up in the US but still below USDA estimates.

Chicago corn for Sept 2013 is 2 ½ cents lower at 456 ½ US cents a bushel.

Canola closed lower last night, as improving US moisture conditions triggered a sell-off in soybeans which flowed through to canola markets in Winnipeg. The record large canola crop expected maintained an overall bearish sentiment as well.

Winnipeg Canola for Nov 2013 is $9.60 lower at $489.80 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9321 USD.

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