The Good: The wheat markets rallied today as a weaker U.S. dollar supported values in all three futures markets. There was also support from colder than normal weather forecast for parts of Ukraine and Russia next week. Winter wheat futures gained five to six cents per bushel in both Kansas City and Chicago markets. Spring wheat led the way today with a gain of eight cents per bushel. in the March contract to settle at US5.82 per bushel. The March contract closed at the highest level since the end of December. This is good news for wheat markets as the contract finally pushed through the psychological US$5.80 per bushel level.
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The Good, Bad & Ugly
The Good: Wheat markets had a good day with nearby spring wheat July futures jumping by 13 cents per bushel to…
The Bad: The nearby canola futures contract dropped by C$1.50 per tonne to settle at C$648.70 per tonne. The bad news is that canola futures failed to hold the C$650 per tonne level for the third time in the past week. The bad news is that canola futures need to hold the US$650 per tonne level to confirm the rally and test the C$660 to C$670 per tonnnes level. Soybean futures dropped by two cents per bushel, while soybean oil futures were down by 0.52 per cent in today’s trade.
The Ugly: Oat exports for the week ending on January 25 were weak at 12,700 tonnes. That brought total oat exports to 472,900 tonnes which is down 315,600 tonnes from last year at this time. The slow exports of oats has persisted since October. Primary elevators shipped 10,300 tonnes during the past week, while 33,900 tonnes were received by primary elevators. The slow levels of oat exports are a concern as exports are forecast to reach 2.57 million tonnes which up by over 200,000 tonnes from last year. The ugly news is that cash oat prices in Saskatchewan are over C$1.00 per bushel lower than last year at this time.
