The Good: Average wholesale diesel prices in Canada dropped by nearly one cent per litre last week. The average price of C$1.123 per litre remains the second highest in the past 10 years. The good news is that diesel prices have remained mostly flat through the calendar year. The U.S. Energy Information Agency (EIA) also provided some positive news for diesel prices in this week’s report. Stocks of U.S. diesel fuel increased by 3.6 million barrels to 113.5 million barrels. The increase in stocks were welcome news for diesel prices remaining in a trading range in the coming weeks.
The Bad: The canola futures yo-yo continued today with the nearby November contract trading down by C$5.70 to settle at C$696.60 per tonne. Canola was dragged down by weak oilseed markets with Chicago soybean futures dropping by 14 cents per bushel in today’s trade. Soybean oil dropped by 1.17 to 1.18 per cent during todays session. European rapeseed futures closed the day down by 0.7 per cent. All of these outside contracts pushed canola futures lower on the day. Canola remains firmly entrenched in a trading range that was established over the past two weeks.
The Ugly: Minneapolis futures were essentially unchanged today with nearby September futures closing the day at C$5.77 per bushel. Winter wheat futures were mixed today with Kansas City futures up by three to four cents per bushel, while Chicago wheat futures were down by five to six cents per bushel. Corn futures traded up by two to three cents per bushel. The ugly news is that wheat markets are continuing to plumb the depths of contract lows. The 2024 lows in the spring wheat contract occurred last year in August and it appears that the 2025 low may be established in August! That is ugly news for spring wheat trading in the coming 30 days!
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