Worry about demand destruction appears to be forgotten Thursday morning and it’s off to the races again for grain prices.
However, canola is a little weaker on generally good growing weather as temperatures in Western Canada are forecast to moderate in coming days. Rain is forecast today and over the next several days in wide areas of the Prairies.
Also pressuring canola is lower soybean oil futures, pressured by falling crude oil values.
At about 10:10 a.m. CST the November canola contract is trading at $627, down 10 cents.
Corn futures are up more than three percent this morning, wiping out Wednesday’s losses. Market focus has returned to yield damage caused by the drought. Some believe yields will fall below the 146 bushel an acre forecast by USDA on Wednesday.
Spring wheat is up more than two percent, supported by corn and by production problems in the Black Sea region.
November soybeans are up less than one percent as there is time yet for rain to rescue yield as the crop develops later than corn.
Oats continue their volatile and erratic trade with July up more than 10 percent today but December up only 0.27 percent.
• Russia’s Grain Producer’s Union today said grain production would likely fall to less than 80 million tonnes this year. Analysts SovEcon last week cut its outlook to 80 million tonnes from its previous forecast of 80-85 million.
• India’s monsoon revived last week with rainfall one percent above average, a welcome development after falling 49 percent below average the previous week. The late rain caused farmers in some states to delay planting of the summer crop but they are now catching up.
