The Good: The March contract is taking leadership in the canola market with futures closing the day at C$625.80 per tonne, which is up C$8.40 per tonne on the day. Cash canola prices remain in the C$13.25 to C$14.5 per bushel depending on location. The strongest bids continue to be in Alberta, where stocks are becoming tighter due to strong export and crusher movement. Support from the soybean market is a strong indication that prices may have more room to run. Nearby soybean futures jumped 23 to 24 cents per bushel.
The Bad: By all standards for the wheat market it was a good day. Nearby Minneapolis futures gained one to two cents per bushel after a very poor start to the trading session. Unfortunately, winter wheat futures were higher during the day which continued spring wheats claim as the cheapest North American wheat. The July discount to Chicago futures dropped slightly today and remains at close to 20 cents per bushel, despite the fact that the July contract is in a new crop winter wheat position. The market sentiment wasn’t helped by disappointing spring wheat exports which totalled a dismal 54,021 tonnes for week ending on December 17th.
The Ugly: The current forecast in Argentina is calling for below normal precipitation through the end of the month. This is coming at a poor time for the crop in Argentina, that has been suffering from dryness for the past three months. The soybean crop needs to receive rains before the middle of January in order to maintain the yield potential of the crop.