The Good: Spring wheat futures posted gains in the second consecutive session. The gains today tried to close the gap created last Wednesday when spring wheat opened more than 10 cents per bushel. The good news is that the July wheat contract closed the session above the 20-day moving average which is currently at US$6.51 per bushel. The gains in spring wheat were supported by nearby HRW contracts closing up by 20 cents per bushel. Chicago wheat futures closed up by 10 cents per bushel which also supported spring wheat values. The gains over the past two days have been impressive for spring wheat in light of the losses in crude oil today.
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The Good, Bad & Ugly
The Good: The spring wheat July contract finished up by two cents per bushel to settle at US$6.54 per bushel. The…
The Bad: July canola continues to trade in a channel that started last Wednesday with the contract trading in a raged that centers around the C$716 per tonne level. The bad news is that the July contract hasn’t tried to fill the gap created last Wednesday. The bad news is that canola closed down despite trading higher early in the session. The contract was pressured by lower soybean and soybean oil futures.
The Ugly: Oilseed markets closed lower today due to a drop in crude oil futures. The June contract traded down by US$4.37 per barrel to trade at US$88.59 per barrel. Although this is good news for users of crude oil, the oilseed markets were under pressure today. This pushed values lower across the oilseed complex. What was driving oil prices lower. It was on the news that the talks with Iran continue despite the recent escalation of hostilities. The closing of the Strait of Hormuz by the U.S. Navy seems to be “bullish” for crude oil but values have dropped anyway. This means that the crude oil market is not following any fundamentals and is all about money flows. These types of markets turn ugly in a hurry.
