The Good: Canola markets continued to march higher with the March contract pushing through the C$650 per tonne level and closing at C$652 per tonne. Remember back to the days when the psychological C$600 per tonne level? That was less than three weeks ago! It is hard to pick a top in the markets, but currently there is no sign that the rally is running out of steam. Soybean oil futures (March) closed the day at 43.84 U.S. cents per pound. Soybean meal and soybeans were also higher today. Cash canola bids in the deferred months are hitting the C$15.00 per bushel level in the western areas of the Prairies which indicate that demand continues to be strong in the forward positions.
The Bad: Unlike the oilseed markets, the wheat market doesn’t move higher without a pause. The March spring wheat market closed the day down one cent per bushel to close at US$6.06 per bushel. This shouldn’t detract from the recent move in the wheat market, which has largely been following oilseeds higher since the middle of December. The wheat market is concerned about moving too high to fast, which is why there was a pause today.
The Ugly: The U.S. political situation can only be described as ugly. There is nothing else to say on the matter. It is just incredible!