Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: Canola was destined to close higher today as the contract was closed yesterday during the rally in European rapeseed and soybean oil futures. European rapeseed and soybean oil contracts were lower today, but that didn’t stop the nearby March canola contract from closing up C$14.80 per tonne today. The March contract closed the day at C$1,018.50 per tonne, which is a new contract record. The increase in the canola contract is impressive given the downtrend of the past two trading sessions. Just remember that markets during this week are thin and gains (or losses for that matter) may be very temporary.

The Bad: The highs this afternoon across the Prairies were mostly in the -20C to -29C range with the coolest temperatures mostly in the northern growing regions. How long will the cold temperatures last? There will be a warm up on New Years Day, but the first half of January looks to be a continuation of the cold temperatures the have prevailed for most of this week. This winter is certainly a more typical La Nina winter than the winter season of 2020-21.

 

The Ugly: Spring wheat markets (wheat markets in general) closed sharply lower as the bears took a run at the March contract as it closed down 25 cents per bushel. The March contract settled the session at US$9.9950 per bushel as the contract tested the psychological US$10 per bushel level. The contract has been rangebound since November with the contract moving between US$10.00 to US$10.60 per bushel level. The wheat market needs some bullish news to keep prices supported.