The Good: The bad news is that the USDA report contained some bearish numbers for wheat, but the good news is that the market ignored the USDA’s take on domestic wheat stocks. U.S. wheat carryout was increased by 16 million bushels to 852 million bushels, but spring wheat didn’t seem to care. USDA actually reduced the spring wheat ending stocks forecast by three million bushels to 255 million bushels. Of course, the weather is the main factor in pushing spring wheat markets higher. The September Minneapolis futures contract closed the day at US$6.6750 per bushel, which is just under the contract high. This move has pushed new crop bids over the C$8.00 mark in the western Prairies and the C$7.75 level in eastern growing regions.
The Bad: There was nothing particularly negative in the USDA report on the oilseed sector. Soybean ending stocks were left unchanged at 120 million bushels, which was close to market expectations. Canola decided to move lower today with July futures down 1.3 per cent to close the session at C$738.80 per tonne. Soybean and soybean oil futures were also down on the day, which pressured canola today. Also contributing to the lower move was a stronger loonie. July canola remains in the trading range of the past month which is bounded by the C$700 per tonne on the low side to C$760 per tonne on the high side.
The Ugly: Just say to yourself that it doesn’t matter what kind of precipitation that you receive in the spring as long as you get moisture. Weather warnings in Saskatchewan and Manitoba have been issued for an early spring snowstorm with amounts expected to be in the 10 cm to 20 cm range on Sunday and Monday. The only drawback is that the snow can be blown around as winds are expected to reach 60 kph on the weekend. Nevertheless, precipitation in any form will be welcome. The system is a large one as it will stretch from western Saskatchewan to northwestern Ontario.