The Good: Soybean futures, soybean oil and meal futures were down today which of course means that canola futures were lower. Well, not exactly! After trading lower through much of the overnight session, canola futures staged a rally and finished the day at a new contract high of C$565.80 per tonne. Canola demand remains strong despite cash bids in the low C$15.00 per bushel range in the western Prairies and the upper C$14 per bushel range in the eastern growing areas. This bodes well for canola prices when soybeans resume their upward climb.
The Bad: Canadian exports slipped during the week ending on January 3, 2021, with a total CGC inspected grains and oilseeds for the week dropping to 706,900 tonnes. This is not unexpected as exports slow down over the holidays. Another factor has been the wet weather that has slowed vessel loading. A break in the weather this week has allowed for a couple of days with good vessel loading, but wet conditions are expected to persist through the weekend.
The Ugly: U.S. soybean old crop sales hit a marketing year low of 37,000 tonnes for the week ending on December 31, 2020. This is the first week that soybean sales have dropped below the pace needed to reach the USDA export estimate. Like the drop in Canadian exports, the lack of U.S. soybean sales last week are related to the slack demand during the holidays. Soybean exports for the week also dropped, but were still a respectable 1.86 million tonnes. Look for export sales to improve next week as we move past the holiday period.