The Good: Cash prices for spring wheat continue to be strong across Western Canada today, despite the closed U.S. wheat markets. Expect wheat futures in Minneapolis, Chicago and Kansas City to get off to a good start when trading resumes tonight. European wheat futures hit seven year highs today with the nearby March contract closing at 235.75 Euros per tonne ( US$284.70 per tonne). Russian tariffs are causing buyers to seek wheat from Europe and other Black Sea origins. Market rumours of Argentina also contemplating export restrictions added to the bullish tone. All of this is really positive news for Canadian exports in the coming months.
The Bad: Canola futures had an inside day as soybean and soybean product markets were closed. The weather over the weekend in South America was largely benign and forecasts have not changed significantly since Friday. Argentina is expected to be dry, while Brazil is expecting rains during the next week. Canola (rapeseed) markets in Europe were higher today, but canola futures decided to trade slightly lower at C$684 per tonne. Canola will be looking to the soybean and soybean oil markets in the overnight session to gain a sense of direction.
The Ugly: It would seem bad enough if temperatures only dropped to normal levels later this week, but below normal values are expected in Alberta through the end of the month. It seems hard to believe that winter like temperatures will be the reality on the coming weekend. Temperatures will struggle to reach the mid minus teens during the day and dip well below the -20C mark at night. The only positive news is that the 2020-21 winter will seem short as the cold temperatures arrived one or two months late!