The Good: The overnight session on Sunday did not point to a favourable day for wheat, but spring wheat managed to finish 3.75 cents per bushel higher on Monday. Spring wheat futures are in the process of forming a bottom after the recent rally. International demand remains strong for wheat with tenders from Tunisia and Turkey announced overnight. Russian prices have dropped about US$6.00 per tonne (16 cents per bushel) during the past week, while spring wheat futures are about 20 cents per bushel lower. MarketsFarm expects Russian prices to resume their climb as demand continues to reduce available supplies of exportable Russian wheat.
The Bad: No doubt that the canola market move today was due to technical trading than any change in the fundamentals. Canola export demand remains strong, but that was not enough to overcome the negative momentum of lower soybean oil and meal futures. Oilseed demand remains strong with soybean exports hitting 2.08 million tonnes during the week ending on October 29th.
The Ugly: The weather early this week is about as good as it gets for Western Canada in early November. That is going to come to a halt this weekend as a weather bomb will move from Colorado into the eastern Prairies. The good news is that there will likely be a decent amount of precipitation with the system. The bad news is it will be in the form of rain, freezing rain and snow plus winds will be very high, especially in the eastern growing regions. This will likely result in blizzard conditions on Sunday.