The Good: Soybean oil has been driving canola values over the past five months as the rally continued again today. Soybean oil futures closed today’s session at the highest level since February 28th. The global vegetable oil situation is tightening, but the soybean oil ending stocks are expected to increase at the end of the 2020-21 crop year. This makes the current rally even more impressive.
The Bad: The latest GASC wheat tender was won by Russian suppliers at CIF values that ranged between US$227.50 and C$228.73 per tonne. The positive news was that the FOB values for the tender were close US$5 to U.S$7 per tonne above the tender issued on August 13th. The world wheat market has been focussed on the large Russian crop, but in reality prices are beginning to increase in the Black Sea region. Hopefully, the futures market begins to take notice of the trend.
The Ugly: The circulation pattern in North America is going to change abruptly this weekend. The 250 mb height levels below show the dominate upper level air flow that will prevail on Monday. The upper air winds will be streaming into the Prairies from the north, which will bring very cold arctic air into the Prairies. Daily high temperatures will drop into the low to mid teens for most of next week. Keep your fingers crossed that Jack Frost stays away early next week.