The Good: For the week ending on February 10, funds bought back a net of 94,316 soybean contracts (12.8 million tonnes). Funds now hold a net long soybean fund position of 123,148 contracts. This is the largest net fund position in soybeans since the end of last year. Fund buying during the week was not limited to soybeans as soybean oil and canola also benefitted from fund buying. Net fund purchases of soybean oil were 23,252 contracts which pushed the fund position to 33,093 contracts net long. This is the largest long position in soybean oil by the managed funds since mid- August of last year. That is good news for the vegetable oil complex including canola.  The Good: Wheat markets had a good day with nearby spring wheat July futures jumping by 13 cents per bushel to…
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The Good, Bad & Ugly
The Bad:Â The March canola contract closed down by C$1.00 per tonne to settle at C$662.50 per tonne. The bad news was that canola closed down despite soybean futures closing up by one cent per bushel. Soybean oil futures were up by 0.4 to 0.5 per cent during today’s session but failed to rally canola futures today. Canola appears to have reached a peak in the recent rally and will need more bullish fundamental news to continue higher.
The Ugly:Â Wheat markets have dropped during the past two trading sessions and clawed back most of the gains that were recorded last week. Spring wheat futures closed down by four cents per bushel today to settle at C$5.69 per bushel. The ugly news is that the spring wheat contract closed below the 20 and 50 day moving averages. This puts the spring wheat contract in a technically weak position. This would allow spring wheat futures to test the recent contract lows set in the middle of January.
