Wheat continues firm

Wheat strength continued to hold through the trading session overnight, with Chicago +6.5¢ to 528.5¢, KC +2 3/4¢ to 451 3/4¢, Minny +3 3/4¢ to 527.5¢, and Matif off half a euro to 181.25€ on the earlier close. Corn dropped half a cent while beans gave up 8 3/4¢ to 905.25¢ (Matif was off a quarter euro, Winnipeg -$4.8).  Crude oil is a third of a cent weaker to $42.6 WTI / $44.9 Brent and the DOW picked up 47 points by the close.  The USD’s back down to 92.8, with the AUD at 71.9¢, the CAD $1.318, and the EUR $1.186.  Macro markets have been getting mixed signals as to whether last weekends delayed trade discussions between the US and China will actually go ahead. US President Trump is calling them cancelled while Chinese state media is saying they will start in a few days.

The ProFarmer crop tour reported reasonable results so far in Iowa. It pencilled yield figures down only 5-10pc for most of the state, some extremely damaged fields in the worst hit areas offset by enough in good condition. The production outcome in Iowa all told would not be much different from what had been expected prior to the storm. The bullseye of the Derecho saw the worst damage and it tapered to the edges.  Crop tour bean counts were surprisingly good on pods.  Pods will need some moisture to get full fill, but the big counts are supportive to yield potential.  Final crop tour figures will be out tomorrow.

Current US rain forecast maps are calling for light showers across the next two weeks, but may strengthen. There are more chances of potential hurricanes coming up in the US Gulf, which in general will help push moisture up into the corn belt.

Australia

Southern markets were relatively unchanged yesterday, again we continue to see small liquidity trade on the new and old crop. More showers swept across parts of SA with some good weekly rainfall totals adding up and western Victoria is still set for a solid forecast for the back end of the month leading into September.