The Good: The spring wheat market moved lower today as weather forecasts for rain in North Dakota were interpreted as being a game saver. Models continue to indicate that the bulk of the precipitation will fall north of the border with only scattered rains expected over the next three days. Spring wheat export sales so far this year are very strong with 1.9 million tonnes booked so far this crop year. Spring wheat conditions dropped this week by nine per cent in North Dakota on the week to 69 per cent good to excellent.
The Bad: Canola markets broke the string of gains during the past week today as futures leaked lower through the trading session. The drop in the canola market is not necessarily fatal from a technical point of view, but the response through the rest of the week is very important. Canola will likely follow the direction of the soybean market to determine future direction.
A sale of 132,000 tonnes on Monday night of U.S. soybeans to China failed to boost the oilseed markets during the trading session. U.S. soybean conditions were rated at 70 per cent good to excellent which kept soybeans from rallying during the trading session.
The Ugly: There was a 7.4 earthquake in southern Mexico this morning. This is certainly not something that is unheard of in Mexico, but it is an area of Mexico that is familiar to many western Canadians. The earthquake was centered near Guadalupe Victoria, which is about 200 km from Huatulco. The only thing worse than having COZID-19 shut down the travel industry in the region would be to have a 7.4 magnitude earthquake a couple of hundred km from your resort.