Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: It was a risk off day in the global financial markets which means that the loonie will take a beating. Well the beating was substantial with Canadian dollar December futures dropped by 0.008 cents per US dollar during the session, but managed to close down by 0.005 cents. The loonie ended the day trading at 77.85 U.S. cents and is st the lowest level since the last meltdown that occurred a month ago. The drop in the loonie is welcome news as it will help offset the drop in U.S. futures values.

The Bad: The canola market continued to move lower today, which marks the third straight session of lower trading in the canola market. The culprit continues to be soybean oil, which was down by close to 2.5 per cent in the day. December soybean oil futures traded below the 55 U.S. cent level since the middle of June. Canola futures (November) settled at C$861.10 per tonne and remains solidly in the C$850 to C$920 per tonne trading range.

The Ugly: The oat futures market has posted two consecutive lower days as selling pressure after hitting contract highs on Thursday of last week. The oat market was sideswiped by losses in the corn market, which was related to general sell off and the advancing harvest progress in the Corn Belt. Oat harvest in the Prairies is nearing completion with lower production and mixed crop quality. Despite the losses, cash oat prices on the Prairies remain at all time highs. You may complain about today’s price drop, but current prices will help reduce the sting of the lower wheat yields across the Prairies.