AWB market update

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Wheat closed a little lower on Friday night, finishing off the week down a full 18 cents. Whereas the trade had expectations for world ending stocks averaged at the 175.88 million tonne mark, the USDA report gave the value as 178.48 million tonnes. Some of the discrepancy is thought to be the result of traders over-estimating the reduction in Argentinean production levels. A negative tone remained through to the final bell, with the bearish report triggering late selling.

Chicago wheat for December 2013 is 3 ¼ cents lower at 649 ¾ US cents a bushel.

Corn had a tremendous turnaround by the bell on Friday, moving significantly higher on the day to close out with only minor losses for the week in total. The USDA report was deemed to be bullish when compared with the expectations of the market going in, with world ending stocks stated at 164.33 tonnes, a little over ten million tonnes over the trade expectations, whereas total usage was quoted as being 275 million bushels higher than September figures, with the increase attributed to strong exports and feed demand.

Chicago corn for December 2013 is 6 ¼ cents higher at 426 ¾ US cents a bushel.

Canola came out stronger following the release of the USDA report late last week, making solid gains over the session on Friday in Winnipeg. After CBOT soybeans made positive advances, with strong export demand and lower global ending stocks resulting in the gains, canola moved higher, despite Chicago soyoil, European rapeseed and Malaysian palm oil values all shifting lower.

Winnipeg canola for January is $5.60 higher at $495.70 CAD per tonne.

The Australian dollar is currently trading at 0.9384 US cents.

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