Glacier FarmMedia COVID-19 & the Farm



The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: The canola market needed to catch up from the market moves in the U.S. and Europe yesterday and the March contract rallied C$8.80 per tonne to close at C$1,021.40 per tonne. The European rapeseed contract hit yet another high at 788.25 Euros per tonne. Soybean oil rallied during today’s session as well with nearby contracts up 3.4 per cent. Soybean futures also supported canola today with nearby March futures up 34.5 cents per bushel to US$13.90 per bushel. The bullish trend for the canola futures market remains intact.

The Bad: Spring wheat closed the day up a modest 2.75 cents per bushel, while the nearby Kansas City contract was up 12.5 cents per bushel. This narrowed the spread between HRS and HRW wheat to US$1.67 per bushel, which is lowest since the last week of November. The market has turned bearish on wheat with Chicago wheat futures now over 11,773 contracts short by managed money (fund) position. The fund short in Chicago is only a few thousand contracts short of the total fund position in Minneapolis. Funds are still long Minneapolis wheat (12,030 contracts), but have likely repositioned their position since the last report on December 28th, 2021.

The Ugly: If you felt that temperatures this December were extreme, you were not mistaken. The monthly deviation from normal temperatures for Alberta and western Saskatchewan were -4C to -7C below normal for the month. Eastern Saskatchewan and Manitoba were also below  normal with temperature deviations ranging from 0C to -4C doe the month. There were.a few isolated areas in southern Manitoba that were slightly above normal for the month. The good news is that temperatures are expected to improve next week to above normal levels. The bad news is that the long range forecast continues to call for below normal temperatures across western Canada.