The Good: Canola closed today’s session higher for the third consecutive day with the nearby contract posting gains of C$3.90 per tonne. The gains pushed March canola to close at C$662.50 per tonne, which is well above the 20 and 50 day moving averages. Soybeans provided the support for canola today with nearby contracts up by 20 to 22 cents per bushel. Nearby March soybean futures are now trading at US$11.12 per bushel, which is the highest value since the first week of December. The good news for canola is that the gains occurred today despite soybean oil trading mostly unchanged today. The strength in canola is certainly giving farmers a good selling opportunity after mostly poor prices since last September.
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The Good, Bad & Ugly
The Good:Â Wheat markets had a good day with nearby spring wheat July futures jumping by 13 cents per bushel to…
The Bad: Spring wheat futures moved higher in todays session with the nearby contract jumping by six cents per bushel. The contract settled at 5.72 per bushel which made up for the losses of the past two days. The bad news is that the gains in spring wheat are not even close to making up the entire losses of this week. On the positive side, the close today was above the 20 day moving average.
The Ugly:Â Spring wheat exports from the U.S. continue to lag last year’s pace with total commitments hitting 5.6 million tonnes this past week. This is down 388,050 tonnes from last year at this time. Exports of spring wheat were strong at 168,104 tonnes in the week ending on January 29. This brought total exports to 4.2 million tonnes. Sales were also strong this past week at 185,297 tonnes. Spring wheat outstanding commitments lag the long term average at 1.36 million tonnes. The ugly news for U.S. spring wheat exports is that they are likely to decline in the coming months as the U.S. soybean program to China begins to gain momentum. Capacity for corn, wheat and soybean exports will be limited at Portland and other U.S. west coast ports. This usually means that spring wheat is the odd man out in this scenario.
