The Good: I could have put up yet another canola futures chart showing that futures hit a new contract high. The CGC did release their weekly (week ending on November 15th) export data for canola, which came in at 245,600 tonnes. This pushed exports to 3.66 million tonnes 15 weeks into the crop year, which is 929,800 tonnes ahead of last year at this time. Canola stocks remain robust in both the primary and export elevator systems and exports should remain strong in the coming weeks. Demand for canola continues to push values higher as we hit new market highs. The January close today settled at C$572.30 per tonne.
The Bad: The wheat market moved lower today with the only good news being that Minneapolis was down by the least of the three exchanges. Nevertheless, March spring wheat futures closed at US$5.46 per bushel, which is below the technical support level of US$5.50 per bushel. U.S. wheat exports were disappointing this week and HRS sales were a minuscule 9,105 tonnes. U.S. wheat exports (including durum) for the week ending on November 12th were 192,389 tonnes. The CGC data for wheat exports (including durum) from Canada for the week ending on November 15th totalled 660,500 tonnes.
The Ugly: The dryness in southern Brazil, Uruguay and Argentina continues to worsen and the forecast is not very positive over the next week. Below normal precipitation is expected from Rio Grande do Sul in Southern Brazil to Cordoba in Brazil. The dryness is still not critical for recently planted row crops in the region, but soil moisture reserves are becoming quite low across the region.