Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: It took one down day in the canola market to push across the psychological C$490 per tonne mark today as the November futures finished up C$3.60 per tonne to a settle of C$491.40 per tonne. Although some support came from higher soybean oil futures, the move was impressive given the stronger loonie. The next target for the contract is the C$493 to C$494 per tonne level. Pushing above that level would leave the C$500 per tonne mark as the ultimate target. Given the good growing conditions for canola this year – exception being northern Alberta – it may take some other news to push canola higher.

The Bad: The oat rally (ChicagoDecember futures) has lost some steam this week as the contract has moved lower over the past four sessions. Oats are being plagued by the good growing season on both sides of the  border. Todays trading session was particularly volatile, but the market managed to close off the session lows. Look for oats to test the recent lows around US$2.62 per bushel in the coming weeks.

The Ugly: The U.S. Federal Reserve announced that they were not changing interest rates this morning in what was the smallest surprise of this year. The Fed also announced that they were going to continue to “do what it takes” to support the economy in these challenging times. This sent the U.S. dollar index lower and gold higher. Look for near zero interest rates from the Fed for the next two years. This is not the shape of a V shaped recovery!