The Good: Canola futures pushed higher today with the January contract closing at contract highs. December soybean oil was up 1.19 per cent and closed at 62.02 U.S. cents per pound. January canola settled the day at C$915.30 per tonne. Support came from stronger soybean and soybean oil futures which were both higher on the day. The move in canola was particularly impressive given the weakness in the European rapeseed futures today.
The Bad: Spring wheat closed lower today with the December 2021 contract settling down one cent per bushel at US$9.68 per bushel. The lower close in spring wheat came at the same time as Kansas City futures closed up five to six cents per bushel and Chicago wheat futures were up two to three cents per bushel. Weighing on the spring wheat contract were the tepid export inspections for HRS during the past week (see the Ugly). The good news is that the December contract continues to trade close to the contract highs. The upward trend line for spring wheat remains intact.
The Ugly: The U.S. wheat export inspections for the week ending on October 14th totalled only 139,753 tonnes. This was less than half of the exports last week. The slow exports were caused by a sharp drop in spring wheat (HRS) exports which were only 14,594 tonnes. For reference, durum exports from the U.S. this past week were 19,350 tonnes and were the second largest export class behind HRW. Spring wheat exports are slow as the West Coast ports are full of soybeans that are trying to make up for lost time in the Gulf. Don’t expect U.S. spring wheat exports to recover until the soybean shipping glut slows early next year.