The Good: The spring wheat market rallied today with nearby futures rallying by six cents per bushel to close the day at US$5.73 per bushel. The gains today marked the third straight positive session and closed one cent per bushel above the 20-day moving average. Minneapolis futures were supported by a five cent per bushel gain in Kansas City futures and a six cent per bushel gain in Chicago wheat contracts. Despite the good news in the wheat market, values continue to be rangebound around the US$5.70 per bushel level.
The Bad: The canola market closed the day slightly higher with the November contract up by C$2.30 per tonne and settled at C$616 per tonne. The bad news is that canola prices continue to bounce around recent market lows. Canola was supported by a four cent per bushel gain in nearby soybean futures. Soybean oil futures gained 0.52 cents per hundredweight in todays trading session. The bad news for canola is that market momentum remains sideways and there is no signs of a relief rally in the immediate future. Meanwhile, basis levels cotine to widen as slow export demand drives country bids lower.
The Ugly: Canola exports were weak with 52,300 tonnes shipped in the week ending on September 21. The crop year to date export total for canola at the end of week seven is 627,400 tonnes. This total is 1.05 million tonnes less than last year’s pace but ahead of the years between 2021 to 2023 crop years. The ugly reality is that canola exports have been hampered by the lack of Chinese business. This has resulted in both canola futures and cash canola prices dropping dramatically.
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