The Good: It appears that canola wanted to hit not only the good, but also the bad and ugly in today’s trading session as the market could not make up its mind on what direction to follow. The January contract is seeing a large increase in volume as traders move their November positions to the January contract. The January contract finished up C$2.30 per tonne at C$536.20 per tonne. The impressive thing about the move in canola today was the fact that soybean oil was down by over 1.3 per cent and the Canadian dollar was slightly stronger during the trading session. Soybean gains were relatively modest in today’s trade so there was little or no support for canola from related markets. It appears that January canola is determined to test the C$541.20 per tonne mark thats represents the 52 week high.
The Bad: Wheat exports from the U.S. were a measly 239,688 tonnes, which were less than half of the exports last week. The reason for the drop in exports is that the U.S. is running out of PNW export capacity. Wheat exports from the West Coast were 140,740 tonnes. The reason is that soybean exports are dominating the capacity in the PNW with 931,780 tonnes exported during the week ending on October 15th. There was no corn exported from the PNW during the past week.
The Ugly: Argentina had another dry week with the main growing areas receiving less than 10 mm. The rains did fall in Paraguay and the extreme northern areas of the country, but this region is an insignificant grain growing area. The main growing areas from Uruguay through central Argentina are still dry and need to receive rains this week in order to maintain yield potential. There is a forecast for some rain this week, but the same could have been said for virtually every week for the past month.