AWB market update

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Wheat once more followed the trends set by corn trading in Chicago overnight, though this time into negative territory, with wheat closing substantially lower by the bell. With China still not buying and the Middle East and North African markets having more favourable pricing options, the bulk of recent US wheat exports have been to Brazil.

Elsewhere, the EU has now granted further licences for soft wheat exports, bringing the total to 3.23 million tonnes, a dramatic increase on the 1.44 million tonnes at the same time last year.

Chicago wheat for Sept 2013 is 8¼ cents lower at 630½ US cents a bushel.

Corn traded sharply lower in yesterday's CBOT session, with the bearish tone in the market was largely a result of storm systems moving through many US states, bringing rainfall ahead of a return to warmer temperatures expected over the weekend.

Providing some support were tighter old crop stocks and more supportive ethanol margins, though this was not enough to turn the tide, with fewer speculators allowing for a risk factor in the trading of corn until there are stronger production signals.

Chicago corn for Sept 2013 is 10½ cents lower at 487½ US cents a bushel.

Canola settled the day slightly lower in Winnipeg, having taken some spill over damage from CBOT soybeans, which also lost traction on improved weather conditions in the US.

Also adding to the negative bias were reports of increased farmer selling and improved confidence that concerns for an early frost are now unfounded. Working in favour of Canola, on the other hand, was a weaker Canadian dollar and speculative short-covering.

Winnipeg Canola for Nov 2013 is $1.40 lower at $509.60 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.9016 USD.

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