The Good: Canola had a good day with the November contract gaining C$5.30 per tonne to close at C$615.60 per tonne. The gains in canola came despite losses in both soybeans and soybean oil futures. The gains in canola were based on the hope that there is the potential for a deal between China and Canada. The Chinese ambassador to Canada indicated that tariffs on agricultural goods would be lifted if Canada’s EV tariff was dropped. This comment occurred on the weekend but this was the first trading day for canola after the comments were made. The good news is that there is a pathway for a resolution to the canola tariff issue.
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The Good, Bad & Ugly
The Good: Wheat markets were strong today with nearby futures moving up by 10 cents per bushel to close the day…
The Bad: The nearby spring wheat contract closed the day at US$5.52 per bushel which was up by three cents per bushel. The bad news was that spring wheat continues to bump along the contract lows which have been breached every few days since the beginning of October. Pressure in wheat markets continues to be driven by aggressive pricing by Black Sea exporters which is driving international prices lower. A weak corn market is already causing pressure in all three U.S. markets.
The Ugly: Crude oil futures were ugly today with nearby contracts down by 88 cents per barrel to close at US$58.70 per barrel. The concern for crude oil futures are increased supply by OPEC while demand appears to be slowing. Seasonally, crude oil is in a slow period as winter approaches in the northern hemisphere. The global economy appears to be slowing as the disruption of U.S. tariffs begins to filter through the world economy. This is ugly news for commodity markets in general in the coming weeks and months.
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