The Good: Spring wheat futures were one of the bright spots in today’s trading action as yesterday’s rally continued despite losses in winter wheat and corn futures. Traders were reluctant to go into the weekend short spring wheat given a dry forecast and the potential for stressful conditions next week. September futures closed the day at the US$7.335 per tonne, which was up 9.5 cents per bushel on the day. Kansas City September futures dropped by 13.25 U.S. cents day which resulted in the Minneapolis to Kansas City spread (September) to widen to US$1.13 per bushel. This is the widest spread between Minneapolis – Kansas City futures since the fall of 2019.
The Bad: Canola futures struggled today with the November new crop dropping by C$2.40 per tonne to settle at C$714.50 per tonne. The good news is that there was little in the way of technical damage caused by the drop in futures prices. Weakness in soybean oil was likely the reason that canola moved lower today, but it is concerning that spring wheat decided to rally on weather concerns, while canola moved lower. Someone should tell canola traders that the moisture situation for both crops is roughly the same. The drop in canola futures did not impact the canola crash margins drastically, which moved down by just over C$2.00 per tonne.
The Ugly: In you were feeling left out because of the widespread frost over the past three days, the northern U.S. has also had to deal with freezing temperatures as well. As you can see below, there is a frost advisory for most of north-eastern Iowa as well as surrounding states. According to the Iowa crop report this week, 68 per cent of the corn and 55 per cent of the soybeans were emerged. There isn’t likely to be a great deal of damage to the corn crop, but soybeans have a relatively low tolerance to frost when they are in the VC to V3 leaf stage. Some replanting of the 2021 soybean crop may need to occur in parts of the northern Corn Belt.