International

Agricultural markets firmed across the board in the overnight session. Soybeans were supported by higher-than-expected weekly export sales and dryness among US row crops advancing to maturity. 

US weekly exports were above the average trade estimates for soybeans at 2.616Mt (1.5-2.5Mt expected), corn 1.494Mt (700kt-1.4Mt expected) and wheat within range at 532kt (300kt-650kt expected). 

Wheat found some buying support after the European Commission released a total soft wheat harvest estimate of 116.1Mt for the 24/25 season, 4.7Mt below the July estimate. The barley crop was also reduced to 51.3Mt, compared to 52.7Mt last month. The total EU grains production estimate was 264.5Mt, down from 271.6Mt in July. 

Grain exports from Ukraine continue at a healthy pace for the current marketing year. The Ukraine Ag Ministry reported 6.75Mt total exports since July 1 (compared to 4.16Mt last year). This is split 3.4Mt wheat, 2.2Mt corn and 1.1Mt barley. 

Market intelligence provider Argus Media maintained an estimate of French soft wheat production at 25.17Mt and exports to non-EU destinations to fall to 4.1Mt in 24/25 (down 60pc from last year and compared to a 10Mt 5-year average). 

US Q2 GDP rose more than expected. The economy grew 3pc in the second quarter, an upward revision from 2.8pc. It was attributed partly to higher personal spending.

Australia

WA canola bids increased A$5-15/t both nearby and new crop. ISCC CANG had the larger move narrowing the GM to non-GM gap. 

Barley remained steady, if not slightly lower. A $5/t lift was seen in parts for wheat on both nearby and new season. 

Eastern wheat markets saw a firm tone yesterday which has bucked the trend from the last three weeks. Consumers were taking some opportunity to step in and own ahead of September weather risk, though volumes traded were small.

Easterns Australian wheat and barley price movements were minimal. Canola bidding saw some localised moves from some company bids lifting $28/t, bringing them more in line with market. The top bidders were relatively stable with a slight upward move of $5-15/t. 

Strong winds created havoc in Victoria, sapped the moisture from soil and affected yield and crop potential. 

This weekend most southern states are set to receive warm temps and high winds, creating conditions not ideal for a crop living from rainfall to rainfall. A relatively dry week, less than 5mm rainfall, is forecast for most of Australia’s cropping regions though the Victorian forecast for the next four days is for 10-50mm rainfall.