The Good: The good news is that it has only taken two days to recover most of the 30 plus cent loss in the nearby November futures on Monday. The harvest pressure from the major soybean states is beginning to dwindle and exports continue to fly out of both Gulf and PNW ports. The weekly exports hit 2.16 million tonnes last week and 264,000 tonnes of overnight sales were reported this morning. Export sales will not be released until Friday, but overnight sales during the period reached 712,804 tonnes, with over 1.5 million tonnes expected for total sales. This is good news for the oilseed markets in general, including canola.
The Bad: December live cattle are on a five day losing streak as the increase in COVID-19 cases is causing demand concerns in the beef market. The increased prices of feed grains are expected to increase marketings in the coming weeks which will increase supplies of slaughter cattle. The arrival of cooler temperatures into the central U.S. this week will also hurt late season grilling demand. These factors are pointing to a retesting of the recent lows set in early September.
The Ugly: The Dow Jones Industrial Average moved down another 165.8 points to close the day at 28,514 points. The stock markets on both sides of the border have had a rough time since setting new records at the beginning of September. The recent rally for the Dow started in mid September, but failed short of the recent high of 29,104 points and the yearly high of 29,568 points. September and October are typically the two most volatile trading months of the year and 2020 is no exception. The problem is that there are still two weeks of October left to go.