Daily Market Comment (17/05/2012) 

US Wheat futures closed higher overnight due to a steady flow of short-covering from fund traders and ideas that demand could be strong in the short term. Some concerns of possible deterioration of winter wheat crop conditions through Western Kansas helped support the market with mostly dry weather forecast through the plains for the next ten days.

Chicago Wheat for July 2012 is 30 and ¼ cents higher at 638 and ¾ US cents a bushel.

Corn futures closed higher overnight following based on the jump in Wheat futures and continued bullish export demand from China. Forecast clear weather over the next week will allow planting to continue in mostly favourable conditions. Less than expected selling pressure from outside market forces helped lift prices overnight.

Chicago Corn for July 2012 is 22 and ¾ cents higher at 620 US cents a bushel.

Canola futures finished lower overnight due to economic fears and the size of funds position weighing on the market. Expectations for a record crop in western Canada continue to weigh on the market; however there are still some areas where weather conditions are less than ideal, limiting the losses.

Winnipeg canola for July 2012 is $1.60 lower at $601.00, Canadian Dollars per tonne.

The Australian dollar is currently trading at $0.9933 USD