While soybeans futures were down, grains and canola were higher overnight. Minneapolis wheat futures closed sharply up amid the possibility that Canadian wheat was oversold, the reality of the shrinking Australian crop and very strong Australian cash markets.
Oilseeds futures markets traded higher on Friday, and grains futures were mixed. Western Australia had rain over the weekend, the gains from which may offset losses caused by 35-42 degrees heat in NSW.
It feels like the markets are boxing up into a corner at the moment looking for the next strike out.
Grains and oilseeds futures markets were firmer overnight. There is plenty of contrasting weather talk as countries in the southern hemisphere experience mixed spring conditions.
Cash prices continue to show strength on the back of NSW/Qld production woes, the improved moisture for WA could boost yields to offset NSW losses, though this still keeps pressure on prices in the east.
Wheat futures overnight finished on a softer note, having failed to break though technical resistance, which again encouraged selling. The Australian weather forecast suggests more of the same.
Grain futures markets were higher at the end of last week. Australian conditions, further marred by weekend frost and continuing dryness in the eastern states, point to further decline in winter crop potential. Western Australia is forecast to receive useful rain.
Winter wheats finished with slight losses after weaker-than-expected export sales, combined with falling spring wheat values, which added offer side pressure.
Wheat finished with slight gains after forging new weekly and monthly highs early in the session. The focus for wheat continues to be production uncertainty in Australia and Argentina.
Wheat found a bid after the release of the monthly USDA World Agricultural Supply and Demand Estimates, which revised world wheat ending stocks lower by 1.55 million tonnes to 263.14Mt, 800,000t below the average market expectation.