The Good: New crop canola futures (November) finished higher today and tested the 40 day moving average. This is the second time in the past week where futures have moved above the average, but failed to close higher at the end of the session. If canola can close above at or above the C$475 per tonne mark, the market should rally toward the C$480 per tonne mark. The Statistics Canada report this morning was within market expectations so there was no reaction to the report today. Seasonally, canola should strengthen through the spring planting period, which also provides some momentum for new crop futures. Keep an eye on the November canola close tomorrow!
The Bad: Saskatchewan released their their first crop report and planting progress is placed at seven per cent complete, which is lower than the 13 per cent reported at the same time last year. Southern areas report the most progress and it should come as no surprise that durum and pulse crops are close to 10 per cent planted. The bad news is in the northern growing regions which are reporting less than one per cent. The Manitoba report earlier this week indicated that planting was just beginning throughout the province. Planting in the Prairies is off to a slow start this year.
The Ugly: The U.S jobless claims this past week declined to 3.2 million which pushes the total job losses in the past seven weeks to 33 million jobs. Markets will get a reading on U.S. and Canadian employment statistics for the month of April. Spoiler alert – these numbers will be ugly on both sides of the border. The market is prepared for dismal numbers, but there is no guarantee that equity markets may not sell off on the confirmation.