Wheat picked up a few cents overnight, while canola and soybeans lost ground.
CBOT found some strength overnight, with the common theme based on slow planting in Hard Red Winter wheat regions, and sub-optimal conditions. We are only one day away from the release of the USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. which will provide the market with updated figures, and hopefully some more direction. The average estimate for US wheat stocks is around 969 million bushels, an increase of 13M from the September report. World wheat stocks are also anticipated to increase in the October WASDE. The market continues to attempt to get its head around production risks in the EU and Russia and its Black Sea neighbours, along with potentially excessive rainfall in Argentina.
There is no news in the world of corn. Last night’s session finished as good as neutral after coming off a three-week high. The market awaits guidance from tomorrow’s report, with yield the major talking point and market expectations at below 180 bushels per acre.
The bean market t provide no excitement, with the main focus remaining on trade policy. Argentina is attempting to do more business into China, which seems to be a market currently dominated by Brazil.
The Australian market was very quiet over Monday and Tuesday, with the Melbourne Cup holiday limiting southern trade. Rainfall outlooks remain unchanged, with northern New South Wales with 15-30 millimetres set to be the biggest beneficiary of rain forecast over the next eight days.
Source: Lachstock Consulting