AWB market update

Wheat started last night's session in a more promising vein before losing its momentum and closing lower at the bell.

The major culprit was reported to be active speculative selling, with weakness from corn values weighing heavily as well. Despite the despondent atmosphere, several tenders went through overnight, including 720,000t of hard wheat for Saudi Arabia (with Australia cited as one origin) and 92,000t of soft wheat for Tunisia.

Chicago wheat for December 2013 is 5 cents lower at 662 ¾ US cents a bushel.

Corn fell slightly lower yet again in Chicago trading, moving to a new three-year low. This persistent weakness continues in the face of data indicating improved demand, with observers suggesting that traders will be watching the yield expectations due in the USDA report to be released on Friday for more serious indications on a market direction.

Chicago corn for December 2013 is 1 cent lower at 426 ¼ US cents a bushel.

Canola closed out last night's session in solid form. Spill-over support from CBOT soybeans provided some support, however the bulk of the upward trend was the result of strong end user demand. Adding further strength were reports of slow farmer selling, with only losses to CBOT soyoil and Malaysian palm oil providing resistance to the gains.

Winnipeg canola for January is $4.70 higher at $496.10 CAD per tonne.

The Australian dollar is currently trading at 0.9509 US cents.