Glacier FarmMedia COVID-19 & the Farm



The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: The Canadian dollar slipped in trading today with nearby December futures ending the session at 75.82 U.S. cents. The Canadian dollar seems to be stalling out after failing to hit the January highs and is trying to establish a trading range between 75.5 and 76.5 U.S. cents. Fluctuations in the U.S. dollar into the November election will increase the volatility in the Canadian dollar in the near term future.

The Bad: Spring wheat futures continue their bearish move that has been present since the beginning of September. Nearby Minneapolis December futures dropped another 6.25 cents per bushel in today’s session. The market is looking at the potential for large stocks of U.S. spring wheat this year which is causing some bear spread activity with the other wheat markets. Managed money funds remain short spring wheat by 6,921 net contracts as of September 8th, which is hanging like a wet blank over the market. There is strong demand for spring wheat, but supplies still are large to present little threat of running out before the end of the crop year.

The Ugly: Crude oil prices rebounded today as a hurricane moving through Louisiana is not good for crude oil production. A reduction in inventory estimates also pushed markets higher today. The nearby WTI contract settled at US$38.39 per barrel, which is above the US$36.13 per barrel level hit earlier this month. Crude oil price increases usually means one thing -higher prices at the pump.