The Good: The spring wheat July contract finished up by two cents per bushel to settle at US$6.54 per bushel. The good news is that the gain in spring wheat filled the gap in the chart that occurred two weeks ago. Winter wheat futures were also higher with nearby contracts up by two cents per bushel in Kansas City and one cent per bushel in Chicago. Wheat was supported by an eight cent gain in corn futures in today’s session. The move higher in spring wheat pushed allowed the July contract to close above the 20 day moving average.
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The Good, Bad & Ugly
The Good: Spring wheat futures posted gains in the second consecutive session. The gains today tried to close the gap created…
The Bad: Canola markets had a positive day that with the July contract closing up by C$2 per tonne to settle at C$718.60 per tonne. Support for canola came from a 10 cent per bushel gain in canola, while soybean oil futures were up by 1.65 per cent. European rapeseed futures closed the session up by 0.7 per cent which also provided support for canola markets. The bad news is that July canola continues to trade in a tight range and has not filled the gap created a week ago. This leaves canola in a technically weak position and will be subject to further declines in the coming weeks.
The Ugly: Recent rains in the U.S. Southern Plains have been very timely, but coverage has been limited to northcentral Texas and southwestern Oklahoma. The rains did not improve the long-term dryness. Over the past 60 days, most of the region received less than 25 per cent of normal precipitation. The driest conditions are reported in the Texas and Oklahoma panhandles along with southwestern Kansas. The dryness over the past two months is starting to impact crop conditions in Kansas with only 32 per cent of the crop in good to excellent condition. This situation is bound to get ugly with minimal amounts of precipitation expected over the next week.
