The Good: December spring wheat futures jumped 23.25 cent per bushel to close the day at US$10.75 per bushel. This continues the recent string of record closes with the market advancing in 10 of the past 11 sessions. The boost in the wheat markets came from the news that Saudi Arabia bought 1.27 million tonnes of wheat in the last tender. Values for the wheat were also strong with prices averaging US$377.54 per tonne CIF. Most of the wheat on the tender will likely be supplied by Australia. The news was followed up by the results of the Egyptian tender, where GASC purchased 180,000 tonnes of Russian wheat at US$364.48 to US$364.83 per tonne CIF.
The Bad: The oilseed market staged a large rally today with ICE canola up 1.1 per cent, European rapeseed up 1.6 per cent and soybean oil 1.14 per cent higher on the day. Despite the rally in the vegetable oil complex, soybeans closed the day down one cent per bushel. The U.S. market remains focussed on bearish ending stocks for the 2021-22 crop and good planting conditions for the Brazilian crop. The market expects that record area in Brazil will result in record production, despite the impact of La Nina. As a result, soybeans remain in the doghouse when compared to other oilseeds and the grains.
The Ugly: The U.S. harvest progress was slowed during the past week. Soybean progress dipped behind average pace with only six per cent harvested in the week ending on October 31st to bring total progress to 79 per cent complete. The corn harvest advanced eight per cent last week and remained above average at 74 per cent complete. The reason for the slow progress were the general rains of 25 to 35 mm in the eastern Corn Belt.