The Good: The November canola contract closed the day up by C$3.10 per tonne to C$649.10 per tonne. The gains today broke the two day losing streak. Technically, the canola chart remains weak and is still vulnerable to a further sell off to the C$630 per tonne support levels. The gains in canola came despite soybean oil futures dropping by 0.93 per cent in today’s trade. European rapeseed futures traded mixed today with the nearby contract down by 0.16 per cent. The fact that canola could rally with vegetable oil futures dropping was good news for canola.
The Bad: The December spring wheat contract closed the day up by two cents per bushel and settled at US$5.89 per bushel. Kansas City futures increased by one to two cents per bushel, while Chicago futures closed the day up seven cents per bushel. The bad news today is that the December contract traded as high as US$5.98 per bushel which was above the 20 day moving average before dropping off below the US$590 per bushel. This is bad news and an indication that spring wheat futures are still trading near the contract lows.
The Ugly: The soybean oil contract traded down today and settled at 51.45 U.S. cents per pound. The overall fundamentals of the global vegetable oil market are positive with the stocks level expressed in days of use dropping from 35.5 day to 34.1 days in the 2025-26 crop year. The tightness in the global vegetable oil situation did not translate into support for the December soybean oil contract. This is ugly news as the contract is poised to drop to the 48 cent per pound level. This would be ugly news not only for soybean oil, soybean and canola futures.
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