The Good: Soybean oil shot up by 4.4 to 4.6 per cent today with the May contract closing at a new high of 56.37 U.S. cents per pound. Soybean oil has yet move past the highs established in 2011. The all time highs were hit in 2008 and the market is still over 15 U.S. cents per pound away from that lofty height. Canola futures responded today by moving C$19.70 per tonne to close the session at C$595.90 per tonne. The gains came despite a drop in European rapeseed values which were down 0.39 per cent at the end of their trading session. The move in soybean oil is good news for canola markets.
The Bad: Crop conditions in the Southern Plains improved last week due to the recent rains that fell across the region. Kansas wheat crop conditions were seven per cent higher this week with 45 per cent of the crop rated as good to excellent. Texas crop conditions were also higher at 29 per cent good to excellent, up from 27 per cent last week. The Texas Panhandle continued to have variable precipitation last week, which kept crop ratings from climbing further. Oklahoma The forecast for more rains in the Southern Plains this week will likely push crop ratings even higher in the coming weeks.
The Ugly: Rains in northern New South Wales and Queensland last week helped summer crops (sorghum) that are in the filling stage and increased soil moisture for wheat planting that will begin soon. The rainfall for the month to date has been excellent in Western Australia and most of the eastern growing areas of the country. These remains a dry area in southeastern New South Wales and South Australia, but the remainder of the country has received above normal precipitation in the late summer and fall period. This is setting up Australia for another good crop in 2021.