The Good: The stellar commodity this week not named gold was canola. Canola finished the week off on a positive note with November futures closing at C$491.50 per tonne. One of the reasons for the move higher this week has been a sharp change in the fund position in the futures market. Managed money funds swung from net short to long this week with funds just under 9,000 contracts net long as of July 28th. Weekly exports for canola this week totalled 223,500 tonnes which pushed total crop year exports to 9.88 million tonnes. This makes exports likely to hit the 10 million tonne mark by the end of the crop year. All of this adds up to a good week in the canola markets.
The Bad: As good as the commitments of traders report was for canola, it was equally as bad for the Minneapolis spring wheat contract. The net short position in spring wheat increased by 472 contracts which has resulted in a net short of 21,125 contracts. This short position translates into 2.8 million tonnes fund shorts. This is one of the reasons that spring wheat has been plumbing the depths of the contract low.
The Ugly: CGC monthly data released this week shows the one commodity that has been impacted by the poor relations from China is soybeans. Exports of Canadian soybeans to China so far this year have been zero. Canadian exports of soybeans are disadvantaged in most years due to the freight disadvantage to supplies from the U.S. or South America. It appears that this will be the first year of no soybean exports to China in over a decade.