The Good: The spring wheat market continues to move higher today with nearby futures up 23.5 cents per bushel to close at US$ 7.545 per bushel. The higher futures values pushed cash prices to C$9.00 per bushel in eastern growing areas and closer to C$9.50 per bushel in the western growing regions. New crop futures are also strong with new crop cash prices trading at a C$0.40 to C$0.50 per bushel discount to nearby cash prices. Wheat markets have definitely been pushed higher by the corn market, which is trading at over eight year highs.
The Bad: Canola futures were up today, so what possibly can be bad about that? Well the spread between old and new crop futures has now widened to the highest level so far this year. November canola futures are currently trading at a C$141.60 per tonne discount t0 July futures. The inverse between old and new crop positions is a concern as it shows that the dryness on the Prairies is not causing very much of a threat about 2021 production. This leaves the November contract relatively undervalued when compared with old crop positions. As the spring planting season advances this spread may narrow quite quickly.
The Ugly: Temperatures were not only cool in the Prairies, Corn Belt and Europe last week, but the Russian spring wheat areas were also much below normal. Siberia reported minimum temperatures that were 5 C to 7C below normal in some regions last week. Overnight lows hit the -5C to -10C range across Siberia. The cool temperatures have slowed planting of wheat and other spring crops. The cold weather is not welcome in Siberia as early planting is usually beneficial for the crop.