The Good: Spring wheat continues to chug along with another strong day as the December contract closed up 15.5 cents per bushel. The December contract closed the day at US$10.38 per bushel, which is a new contract high. The driver of the move in spring wheat remains demand, despite a poor sales report for last week. U.S. net wheat sales totalled only 269,300 tonnes, with only 42,254 tonnes of spring wheat sold during the week (ending on October 21st). Canadian wheat shipments were only 185,000 tonnes this past week (week ending on October 24th), so the market had every reason to sell off. Instead spring wheat futures continued to gain relative to the nearby winter wheat contracts.
The Bad: The oat market was on a four day winning streak headed into today, but the market pulled back 0.5 cents per bushel. The December oat contract set an all time high yesterday, but couldn’t follow through in todays trading action. Some of the price movement may be related to traders moving their positions in the oat market from December to March. The March contract was up 6.5 cents per bushel today, but remains well below the US$7.00 per bushel level.
The Ugly: The soybean oil market continues to struggle, but the relatively low price of the commodity isn’t driving extra demand. We are only three weeks into the soybean oil and meal marketing year, but the shipments and see are the lowest since the 2013-14 marketing year. Some of the delay in shipments will be due to the tight ending stocks of soybeans this year, but exports need to pick up soon. Shipments were just under 11,000 tonnes so far this marketing year, which is the slowest pace since 2003-04. Soybean oil closed down 0.9 per cent to settle at 60.87 U.S. cents.