AWB market update

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Wheat moved lower in Chicago, with corn facing its own losses overnight and not enough steam coming from bullish signals to push things higher by the bell.

Whilst export volumes have been modest so far this week, there is still interest coming for exports from Brazil, and with rumours of frost and winterkill issues in South America this source of demand may be an ongoing one for US markets, primarily Kansas City.

Elsewhere, Tunisia and Saudi Arabia were the only notable buyers this week, with China remaining conspicuously absent from the market, now for the better part of a month.

Chicago wheat for Sept 2013 is 4 cents lower at 650¾ US cents a bushel.

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Corn was down in last night's session, losing some of the gains of Monday night, as an increased chance for rainfall in some of the US corn growing states combined with forecasts indicating lower temperatures eroded some of the confidence, and quite possibly some profit-taking took its toll as well.

These losses were limited however, as speculative buying was noted. It would seem that enough players in the market still doubt the accuracy of currently held USDA figures going forward in the warmer, drier conditions.

Chicago corn for Sept 2013 is 16 cents lower at 499¾ US cents a bushel.

Canola backed away from some of the gains also overnight, with the losses to CBOT soybeans resulting in a large drop in Winnipeg also.

Taking a toll were farmer selling and profit-taking after the rally earlier in the week, however there was also a strong feeling that correction was needed after gains had been overdone on Monday, particularly given the continuing bearish outlook for the Canadian crop.

Winnipeg Canola for Nov 2013 is $8.30 lower at $529.70 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.8979 USD.

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