Weaker across the board, with wheat leading the way.
Wheat has continued its recent trend of volatility by falling overnight on the back of a 20c rally the day before. Black Sea production remains in question as dry conditions continue. US prices dropped despite this, but still remain non-competitive into world export markets.
Despite the sell-off in wheat, corn markets remained relatively stable. Many in the market believe that the USDA could lower its estimate for Brazil’s corn production soon, and US ethanol production is still on pace to exceed this year’s target.
Prices remain firm across the board domestically, but there seems to be increased interest from growers this week in selling, particularly in southeast Australia, where handy rain fell last week. There is some rain on the eight-day forecast, but nothing major for the parts of New South Wales that need it most.
Source: Lachstock Consulting