The Good: The move in spring wheat market was good news today as the contract closed up three cents per bushel to end the day at US$5.60 per bushel. The positive news today was that the December contract managed to test the 50 day moving average which is currently at US$5.67 per bushel. The contract high today was just under US$5.67 per bushel level, but the contract lost momentum later in the trading session. The good news is that spring wheat is building on the momentum displayed last week. The rally can be confirmed by moving through the 50 moving average and resistance levels that lie close to US$5.70 per tonne level. Perhaps the four month bear market in spring wheat is finally coming to an end.
Read Also
The Good, Bad & Ugly
The Good: Canola futures had a good day with nearby January futures up by C$2.50 per tonne to close at…
The Bad: Canola futures closed up by C$1.70 per tonne to settle at C$619.20 per tonne. The main driver of the canola markets were a market rally in soybeans which closed up by 26 cents per bushel. Soybean oil also rallied by close to one per cent during today’s session. Soybeans were driven by the possibility that China and the U.S. will come to a trade agreement before the start of the APEC summit later this week. The bad news today is that canola barely managed to close higher while soybean markets moved higher. Hopefully a canola agreement with China and Canada is a possibility in the near future.
The Ugly: Canola exports continue at a pace that is less than required to hit the seven million tonne mark. This is the minimum level of exports needed to leave a reasonable level of stocks at the end of the crop year. In the week ending on October 19, canola exports were only 124,000 tonnes which is below the 140,000 tonne per year average needed to reach the export target. Canola exports are now an astounding 1.51 million tonnes behind last year’s pace at only 1.08 million tonnes. Canola exports are lagging the pace in previous year’s as well and are now at the lowest level in over seven years. That is ugly news for canola price prospects in the coming months.
To continue reading, please subscribe to Western Producer
Subscribe nowAlready a subscriber? Log In
