The Good: Wheat markets were strong today with nearby futures moving up by 10 cents per bushel to close the day at US$5.58 per bushel. The good news is that December spring wheat futures closed above the 20 day moving average which lies at the US$5.55 per bushel level. Winter wheat futures were broadly higher with nearby contracts up by 10 to 11 cents per bushel. Wheat was supported by the gains in corn futures which rallied by five cents per bushel today. The good news is that spring wheat just posted the largest gain since the beginning of July.
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The Good, Bad & Ugly
The Good: U.S. wheat exports during the week ending on October 16 were solid at 480,614 tonnes. This pushed total…
The Bad: The canola market had a good day, with the nearby contract moving up by C$5.40 per tonne to settle the day at C$618.50 per tonne. The bad news is that canola futures remain in a trading range betweek C$600 and C$6.25 per bushel. On the positive side, canola finally moved higher in sympathy with outside markets, with soybean, soybean oil and European rapeseed futures finishing higher on the day. The positive news today in canola was that the five day losing streak finally was broken.
The Ugly: The news from the crude oil market today was that the nearby contract rallied by 5.6 per cent today and is trading just under the US$62 per barrel level during today’s session. The ugly news is that the crude oil market moved through both the 20 and 50 day moving averages and sets the contract up to move even higher. The ugly news is that crude oil prices are increasing despite concerns that the surplus of crude oil in the market continues to increase. This increase in prices was driven by the announcement of new sanctions on Russian oil and gas companies. If these sanctions are effective then that means that oil supplies will be reduced and prices will have to increase.
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