AWB market update

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Wheat finished marginally higher at last night's close, which was the highest close since July 11.

Concerns on next year's production in Russia and the Ukraine provided speculative buying support and helped the market higher. The Ukraine crop could be down by a third, buoying pricing in the US and French markets. The Black Sea is drier this week but of more concern is that the region will remain too cold to see germination.

Chicago wheat for Dec 2013 is 7 ¾ cents higher at 694 ¾ US cents a bushel.

Corn also finished moderately higher. It was reported that farmers are holding back on selling despite good progress in the harvest, which is further tightened the market. Weather conditions in South America are looking positive in terms of upcoming plantings.

Chicago corn for Dec 2013 is 6 cents higher at 449 ¼ US cents a bushel.

Canola finished slightly higher at last night's close. The record harvest continues to roll on with some concerns around lack of storage still being an influential factor. The Canada dollar was firmer against the US which is eating into crushing margins with Canada crushing rates falling 2.3%.

Winnipeg canola for Nov 2013 is $1.00 lower at $478.60 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9424 USD.

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