The Good: In a day of little on the good news front for markets, spring wheat futures managed to eke out a two and a quarter cent gain on the day. Today saw continued dramatic moves downward in the canola, corn and soybean markets, so even a small gain in wheat looks better, even after a rough four days of trading. Cash prices in the Black Sea region and Europe continue to strengthen as demand has been strong this past week with a number of tenders by various countries.
The Bad: Corn futures have seemed to get no respect this week. Weekly export sales were strong and the demand outlooks is good and yet, futures this week have all but erased the gains posted last week. Corn harvest is beginning in the southern U.S., but the heart of harvest activity will not occur until October. Looks for harvest pressure to continue over the next month which will keep a lid on corn prices in the coming weeks.
The Ugly: Well the rally was nice while it lasted. The drop in canola futures today erased the rally of last week and the charity is technically weak. Expect the trade overnight to test the C$510 per tonne mark, which is the next level of support for the canola market. The irony is that there has been no change in the fundamentals over the past four days, but momentum is certainly lower.