The Good: The spring wheat contract moved up by five cents per bushel today which was the largest upward move for the wheat contract since July 1. September spring wheat futures increased by five cents per bushel during the session and closed at US$$5.74 per bushel. Spring wheat futures followed the winter wheat contracts which ended the day up by 10 cents per bushel. The good news for wheat is that the rally denotes the initial stages of forming a bottom. That is a positive sign for farmers who have suffered from the sharp drop in prices over the past month.
The Bad: The canola market had a positive day with the nearby November contract gaining C$7.60 per tonne and settled at C$677.30 per tonne. The bad news is that the gains in canola did not make up for the losses during the past two days. The move today continues the confirmation of the recent trading range that lies between C$670 to C$700 per tonne. A significant rally is needed to break out of the current trading range.
The Ugly: After staging a rally during the past week, cash prices have moved down by 15 cents per bushel over the past two days. The decline in prices is likely in anticipation of the upcoming harvest. The pea crop in 2025 is expected to be larger this year which will push prices lower this year. Vegetable protein markets remains weak with the nearby soybean meal contract trading at US$276 per short ton. Soybean meal prices have increased by US$10 per short ton off of the contract lows but remain range bound in the US$270 to US$280 per short ton. Pea prices have followed the same bearish pattern as soybean meal futures over the past six months.
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