Canadian Grain Market Takes Bearish Turn Amid Reduced Production

The Canadian know-risk market outlook has taken a bearish turn as grain and oilseed production is being reduced. Wheat and soybean oil are leading the markets lower to end the month, with spec traders taking profits on the last trading day of the month. This comes as rain has been falling across the Midwest, particularly in South Dakota and Nebraska, which have received much-needed precipitation.

The European Commission has cut its 2026/27 soft wheat production estimate from 126.3 to 124.4 million metric tons (MMT), with exports down from 30.0 to 29.0 MMT and ending wheat stocks down from 13.8 to 12.9 MMT. Corn output was also dropped from 59.9 to 51.9 MMT, while imports are up from 19.1 to 24.0 MMT.

Craig Turner notes that there is no bullish news this morning and that a bull market needs to be fed every day. He adds that August tends to be seasonally bearish for the ag markets, with traders focused on the weekend weather and any changes in the forecast when the Sunday night open rolls around.