The Good: The corn exports last week were strong at 1.32 million tonnes during the seven days ending on October 16. This was up from the 1.2 million tonnes last week and pushed the total exports during the first nine weeks of the crop year to 9.34 million tonnes. Exports to date are the largest in the past 35 years, which is good news for corn demand this year. The corn harvest in the U.S. is advancing rapidly as October winds down. Normally nearly three quarters of the crop would be in the bin by the third week of October. Strong export demand is good news for corn prices in the coming months.
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The Good, Bad & Ugly
The Good: Wheat markets were strong today with nearby futures moving up by 10 cents per bushel to close the day…
The Bad: Spring wheat futures traded sideways today with the nearby December contract closing the day at US$5.49 per bushel. Winter wheat contract were mixed with the Chicago contracts up by a cent per bushel, while Kansas City futures will close down 1.5 cents per bushel. The bad news is that spring wheat continues to trade at contract lows with no sign that the spring wheat contract will rally from these levels. That is bad news for a potential spring wheat rally in the coming months. Seasonally, wheat tends to enter a sideways to bearish trend in November and December as the Argentine and Australian crops begin to be harvested.
The Ugly: The nearby canola contract dropped by 80 cents per tonne to settle at C$615.40 per tonne. The ugly news is that the nearby canola futures contract closed down for the third consecutive session. Canola closed down today despite stronger soybean and soybean oil futures. Soybean futures closed up by 12 to 13 cents per bushel, while soybean oil futures were up by 0.35 to 0.37 per cent. The fact that canola has failed to rally when outside oilseed markets are pushing higher is a very ugly sign for canola.
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