The Good: It seems like it has been a long time since the markets rallied together, so lets start the weekend with nothing but good news. Canola leads the with the good news as the nearby July contract closed up over three per cent at C$868.70 per tonne. The dryness on the Prairies and stronger soybean oil prices drove the contract higher on the day. After hitting yet another market high today, it certainly looks like the July contract is destined to test the all time high of C$908.70 per tonne set by the May contract. Soybeans also provided some support for canola today with nearby July futures finishing up 32 cents per bushel. The oilseed market was on fire today.
The Good: Spring wheat futures finally decided that the dry conditions and smaller sown area may be worthy of a little premium for the 2021 crop. Nearby September spring wheat futures closed the day up 19.25 U.S. cents at US$7.6375 per bushel. The spread to both Chicago and Kansas City wheat futures increased for nearby spring wheat by 14 and 10 cents per bushel, respectively. Why the market picked today to finally focus on the drought conditions in the spring wheat areas of Canada and U.S. is a mystery, but at least it is finally happening!
The Good: Corn futures have been powering the strength in the grains and oilseeds market. The nearby July contract finished up the 25 cent per bushel limit today. The move in corn this month has pushed the futures contract to near the all time highs set back in the drought of 2012. The corn crop is also starting off the year on the dry side, especially in the western areas of the Corn Belt, but that is not the reason for the recent rally. Demand for feed grains continues to be very strong and the U.S. is the main global supplier. The fact that Brazil’s safrinha crop is also in trouble is also supporting the corn market. This is the last trading day with a 25 cent per bushel limit in corn. On Monday the limit will move up to 40 cents per bushel.