The Good: Rarely is an unchanged market considered a good thing, but today’s spring wheat market achieved a moral victory by trading essentially unchanged. Spring wheat exports last week were stronger (by a smidge over HRW) than all other classes of wheat, but winter wheat futures closed higher during today’s session. The wheat narrative continues to be one of surplus, but Russian prices continue to climb as the country continues to contemplate export restrictions from mid February through June. Wheat continues to be the Rodney Dangerfield of the ag space – it just gets no respect
The Bad: OK, let me get this straight. Canola use is at record levels during the first three months of the year and there is a serious possibility that ending stocks will end up below one million tonnes if canola use continues at the current pace. Soybeans and soybean oil futures managed a modest rally today which should have resulted in a rally in canola, despite a slightly stronger loonie. That did not happen as nearby contracts dropped by C$1.10 to C$1.20 per tonne. The good news is that no technical trends have been broken and the January futures contract closed at C$559.30 per tonne.
The Ugly: Our family used to in pre COVID-19 days schedule our Carribean vacation in mid November as I could essentially guarantee that hurricane season was essentially over. This year has been a record tropical year and yet another storm is pummelling Guatemala and Honduras this afternoon. This adds to the record Atlantic storm season with the latest storm named as Iota. This is the second tropical storm/hurricane that the region has experienced in the month of November.