The Good: The nearby soybean meal contract has gained nearly US$20 per short ton during the past three weeks. This is good news for the vegetable protein meal markets around the world. Soybean meal prices are beginning to rally as managed money funds are beginning to liquidate their record short position in the futures contract. The funds bought a net of 24,283 contracts during the week . Funds still had a record short of 109,309 contracts on August 12. The good news is that the rally in soybean meal will help support other protein meals like field peas and canola meal. That is good news is that the protein meal market has likely seen the market lows during the past month.
The Bad: Canola markets mostly moved sideways today and settled at US$651 per tonne. The bad news is that canola continues to be mired in a trading range that lies between C$650 to C$660 per tonne. On the positive side, soybean oil futures remain strong and ended the day at 53.32 U.S. cents per pound. Soybean futures closed the day down by one cent per bushel. Soybean conditions dropped by one per cent to 68 per cent good to excellent.
The Ugly: The spring wheat market continued to set new contract lows in today’s trading action. December spring wheat closed the day down by two cents per bushel to settle at US$5.86 per bushel. Spring wheat conditions increased to 50 per cent good to excellent in the week ending on August 17. The spring wheat harvest is 30 per cent complete with 24 per cent of the crop in the bin in North Dakota. The ugly news for the spring wheat market is that there is still at least two weeks of harvest pressure remaining. Until the harvest pressure subsides, spring wheat markets will continue to set new contract lows.
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