The Good: The canola yoyo continued today as the market bounced between a low of C$502.60 to a high of C$511.7 before closing at C$509.80 per tonne. The impressive part of the move today was that soybean and soybean oil futures were slightly lower and the Canadian dollar was stronger. Markets are still trying to assess the damage of the frost this week on canola quantity and quality. In the face of strong demand, there is concern that a reduced crop would lead to very tight ending stocks at the end of the crop year.
The Bad: The spring wheat market floundered today with nearby futures trading on both sides of unchanged. At the same time winter wheat futures moved higher, which widened the Minneapolis to Chicago December 2020 futures discount to 12.75 cents. The futures spread has ranged between +5 to -15 cents per bushel for most of the past two months. Historically the Minneapolis – Chicago spread has not remained this narrow for more than a month or two.
The Ugly: The U.S. senate tried to pass a “skinny” relief bill of 500 billion dollars this afternoon, but the vote failed to garner the 60 votes needed to pass the legislation. The need for more stimulus in the U.S. was brought home by the weekly unemployment claims report that was unchanged from last week at 884,000. Expectations for economic growth in the next two quarters are starting to be trimmed by forecasters as the U.S. economy is slowing down.