The Good: The USDA reported corn sales overnight of 1.156 million tonnes, which pushes total commitments above the 60 million tonne mark for the 2020-21 marketing year. Corn export sales and shipments to week 27 were 59.52 million tonnes, which means that total commitments are now, at a minimum, 60.68 million tonnes. The USDA corn export forecast for the 2021-22 crop year is 0nly 64.8 million tonnes which leaves only 4.2 million tonnes left in the marketing year. Perhaps that estimate needs to be raised in the next report!
The Bad: Canola prices moved lower today as the nearby May contract settled at C$791.60 per tonne. The drop in canola was caused by lower soybean oil prices (55.09 U.S. cents per pound) and a stronger loonie. The drop in canola prices was not driven by any fundamental news today. The global vegetable oil situation is still tight and canola stocks in the Western Canada are dwindling with strong crusher and exporter demand.
The Ugly: You just need to draw in the lines to see what the 8-14 day forecast for precipitation is for Western Canada. Below normal precipitation and above normal temperatures looks to be the forecast to the end of March. The warm temperatures this month, if the forecast is correct, will be one of the ten warmest on record. The spring is starting off on the dry side.