The Good: Canola futures bucked the daily trend of moving lower and finished C$7.60 per tonne higher to close at C$672.80 per tonne. The weaker loonie was likely behind the move as soybeans and soybean oil futures were down on the day. The market is still focussed on the USDA report tomorrow, where the final production estimates and new supply and demand forecasts will be released. Expect the market to trade sideways until the USDA releases their production estimates tomorrow at 11:00 CST (10:00 CST).
The Bad: Spring wheat futures finished the day lower by one to two cents per bushel. The drop in the market today confirmed the topping action in the nearby contract and more bullish news is needed to push futures higher. The numbers from USDA are unlikely to be a game changer for the wheat market, but recent reports from USDA have been supportive. Wheat is looking for a bullish push from corn in this report.
The Ugly: Weekend rains in Argentina were better than expected, but largely missed the critical areas in northern Buenos Aires and southern Santa Fe and Entre Rios. The dryness in the key growing region of Argentina is expected to continue into the last week of January. Rains are urgently needed to stabilize crop conditions in the key growing regions. It just doesn’t look like those rains are coming.