Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: The spring wheat December contract moved up 15.5 cents per bushel in trade today which pushed the contract close to the highs established in 2012. The contract closed at US$9.89 per bushel this afternoon and appears to be on the way to US$10 per bushel. Spring wheat fundamentals continue to be bullish as tight supplies will continue through the next two quarters. The next stop after US$10.00 per bushel are the highs established in 2011 of that are just above the US$11.00 per bushel level.

The Bad: The canola market had another strong day with the December contract moving up C$11.50 per tonne to close at C$949.30 per tonne. Interestingly enough, the spread between European rapeseed futures and ICE canola remains below the minus C$50 per tonne level to close at minus C$54.11 per tonne. That means that the relative value of ICE canola continues to be priced significantly below the European futures level. In a hot global vegetable oil market just remember that canola has the highest oilseed content of the major oilseed crops.

The Ugly: The moisture situation on the Prairies improved over the past month in the Peace River region and parts of eastern Saskatchewan and Manitoba. The problem is that the amounts were not enough to replenish supplies lost during the past crop year. An even bigger problem is that the rest of the Prairies received less than 40 per cent of normal precipitation. The normal precipitation amounts drop considerably from the middle of October into the winter season. Let’s hope that La Nina winter brings plenty of snow to help boost moisture supplies for spring.