The Good: The nearby wheat contract (May) closed up by 13 cents per bushel to settle at US$6.25 per bushel. The good news is that spring wheat closed higher after four consecutive days of losses. Gains in spring wheat led wheat markets higher with Kansas City increasing by 12 to 13 cents per bushel, while Chicago futures were 11 to 12 cents per bushel higher. Corn futures provided little in the way of support with nearby contracts down by one cent per bushel. The good news is that spring wheat tested the previous lows set in the beginning of March and has bounced off those lows. The is a technically positive move by the nearby spring wheat futures, but wheat needs to rally in tomorrows session to confirm today’s move.
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The Good, Bad & Ugly
The Good: The spring wheat July contract finished up by two cents per bushel to settle at US$6.54 per bushel. The…
The Bad: The nearby canola contract closed up by C$1.10 per tonne to settle at C$705.30 per tonne. The gain in canola was positive news as both soybeans and soybean oil dropped during the past week. Soybeans were down by 14 cents per bushel in today’s session, while soybean oil dropped by 0.9 per cent. The bad news for canola is that the nearby contract is hovering just above the psychological C$700 per tonne level. That is bad news for canola in coming trading sessions.
The Ugly: The soybean oil contract closed down by 0.9 per cent and settled the day at 66.50 U.S. cents per pound. This the lowest settle of the soybean oil contract since March 24 when it closed the session at 65.73 U.S. cents. The ugly news for the soybean oil contract is that the close today fell below the 20 day moving average. This leaves the soybean oil below the 20 day moving average that lies at the 67.10 U.S. cents per pound. All of this occurred despite gains in the nearby crude oil contract which closed just below the US$100 level. Look for the soybean oil contract to test the 65 U.S. cent per pound level in coming days.
