The Good: Corn sales during the past week were strong with USDA reporting a total of 1.23 million tonnes during the seven days endiong on September 11. The sales were mostly to Mexico which bought 419,200 tonnes. South Korea and Japan also purchased significant amounts during the week. The sales brought total commitments for U.S. corn to 23.8 million tonnes which is the second largest amount in the past 10 years after the 2020-21 crop year. China is notably absent from the list of corn purchasers this crop year. This is good news for corn markets as the strong export program helps support values in the face of record production.
The Bad: Wheat markets closed lower today with Minneapolis futures dropping by 2.3 cents per bushel to settle at US$5.72 per bushel. Kansas City and Chicago wheat markets dropped by four to six cents per bushel on the day. The bad news is that corn futures also traded lower in todays session. Spring wheat markets remain close to contract lows and well below the 20 day moving average. The bad news is that the spring wheat contract remains technically weak and the contract lows are likely to be tested in the coming weeks.
The Ugly: Canola futures has another bad day with the nearby November contract down by C$4.20 per tonne. The canola market settled at C$623.90 per tonne which is the lowest level in the past five trading sessions. The losses in soybean oil markets drove the canola markets lower. Soybean oil moved down by 1.26 per cent on the day, but remained above the 51 cents per pound level. Canola was supported by European rapeseed contracts which closed the day up 0.7 to 1.0 per cent during today’s trading session. The ugly news is that canola is being hit from all directions. Canola remains undervalued relative to other oilseeds but markets don’t seem to care.
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