In the wheat pits Chicago settled down -1.25 usc/bu closing at 489.25usc/bu, Kansas was -1.75 usc/bu lower to settle at 402.25usc/bu, while Minni rallied 2.5 usc/bu to go out at 538.5usc/bu. Corn gained 2.5 usc/bu to go out at 387usc/bu while Beans were down -1 usc/bu to settle at 915.25usc/bu WCE Canola rallied 1.9 CAD/mt closing at 462.6CAD/mt with Matif Canola finishing higher by 1 Eur/mt. In outside markets the Dow Jones fell -95.7 points, Crude was down -0.03 bbl the Aussie was -0.0037 lower to settle at 0.67307, the CAD rallied 0.0003 while the EUR fell -0.0006 Markets slowly drifting into the USDA report.

The focus on corn and bean yields is certainly the driver but there could also be some interesting points in the wheat balances.

Global ending stocks will have to deal with a lower southern hemisphere number along with speculation around wheat feeding.

While the US has been essentially rationing corn demand via higher prices, the South Americans have been discounting to clear.

The European market has been mixed with large Black Sea corn production offsetting some EU shortfalls – so there will be plenty of debate leading into Thursday’s reports.

From a weather perspective Argentina and Australia continue to be the main concern. From an NDVI perspective Argentina is extremely concerning – Buenos Aires state, which produces 40-50pc of Argentina’s wheat, is at the lower end of the historical range and will certainly be impacting production.

The USDA currently has Argentina in for 20.5 million tonnes (Mt) and Australia at 19Mt production (16.3Mt and 23.2Mt respective 5yr avg) which will almost certainly be above the reality today.

While still not creating a global problem as such, this is certainly a reason for the global market to find support. Egypt’s wheat tender tonight will be a decent reflection of what the world’s biggest importer is thinking.