The Good: Canola spent a grand total of one day on the naughty list and is back in positive territory today. The March contract closed at C$628.40 per tonne, aided by strong soybean oil futures. March soybean oil closed the session at 41.09 U.S cents per pound. Any concerns about the moves yesterday in the canola market completely evaporated today. Yes Virginia, the Santa Claus rally in canola is real!
The Bad: If yesterday was canola’s turn to interrupt the rally, today certainly saw issues with soybean meal. Chalk this one up to holiday trade as the main factor driving the soybean oil market, Argentina port issues, is also delaying soybean meal shipments. With no big changes in the market fundamentals, one can assume that the move had more to do with profit taking before year end than anything else.
The Ugly: Another storm rolled through the Prairies this week, but December remains drier than normal in most areas of the Prairies. The storm did help boost precipitation levels in southern Alberta (mostly around the Trans Canada Highway) and areas close to Regina and Winnipeg, but the remainder of the Prairies have been very dry through the month of December. This continues the drier than normal trend that has persisted in the Prairies and Northern Plains of the U.S. for since the spring. Someone should maybe let the spring wheat market that drought conditions persist in the Northern Plains.
The really good news today is that it is Christmas Eve. Merry Christmas to all of you from the MarketsFarm Team.