The Good: There was nothing positive about the agricultural markets today, with oil crop futures off by close to 1.1 per cent in the nearby contracts. May futures closed the day at C$684.50 per tonne, which is close to where we closed on Monday. It is important to keep this in perspective as increased volatility is expected, especially in the futures markets. Canola futures are still relatively undervalued when compared with soybeans with the July spread sitting at C$34.43 in favour of canola. Just to remind everyone, the long term average is around the C$50 to C$55 per tonne level.
The Bad: At least some market participants read the USDA report before trading today as spring wheat was punished unfairly yesterday. Nearby contracts still closed the day down seven to eight cents per bushel, which was half the drop of the winter wheat contracts in Kansas City and Chicago. Another positive note was that cash bids in western Canada are down, but not to the extent that futures have fallen in the past two days. There are still bids in the C$8.00 + per bushel bids across the western Prairies and C$7.25 per bushel to 7.75 per hushel in the east. MarketFarm views the commodity moves of the past two days as being mostly technical in nature rather than changes to the fundamentals.
The Ugly: Prairie dwellers get them all the time! I’m talking about the pictures from the West Coast of the first flowers blooming in the garden while we are mired in the middle of winter. Well, the west coast is under an Arctic Outflows Warning, which we here on the Prairies call a cold front! The overnight lows will be -3C to -5C range, but windchills will be in the -15C to -25C range. Maybe its time to give them a call and see how those flowers are doing tonight!