Overnight US markets have dropped slightly and look vulnerable with no new bullish news coming through. London wheat has a lost £20/mt on Nov22 in the last 2 days. How do you catch a falling knife? That is the issue now, the market rally will come again but how long does it drop before we see a rally. Don't forget we still have the war premium in the price and traders estimate that this is between £50- £80/mt in the wheat market.
Oilseeds are still relatively firm even after Malaysia announced that it was lifting its export ban on palm. Canola plantings in Canada are behind schedule and unless they get a good break in the weather will struggle to catch up. This market is still sensitive to any change in ethanol mandates and EU countries are still looking at this in the food vs fuel debate.
Rains are occurring across Europe, not enough to change the crop dramatically but they should stave off any more damage.