Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: The commodity markets were under pressure today as macro based trading kicked in and investors/speculators headed for the sidelines. In light of the pressure in the palm and soybean oil markets, canola held up rather well, with the March canola contract closing down C$0.50 per tonne to settle at C$1002.20 per tonne.

The Bad: The March spring wheat contract was under pressure through most of the trading session and managed to close the day down 2.75 cents per bushel at US$10.20 per bushel. Spring wheat continues to trade in a range between US$10 and US$10.50 per bushel. The downward pressure from the macro selling pressure has not been enough to move spring wheat out of the trading range. If today was a relatively slow trading day, just wait until the end of the week!

The Ugly: The oat market landed with a thud today as the nearby March contract closed the day down 40 cents per bushel to settle at US$6.62 per bushel. The decline in oat prices today are likely due to thin holiday trade unless you believe that the omicron variant reduces oat consumption in the U.S. and Canada. The oat futures market is thinly traded at the best of times, but the holiday period is usually very slow in the oat trade. The best advice for oat traders is to take the next 1o days off and come back to trade in the New Year!