The Good: Canola markets were down for most of the day as the surging loonie pushed values lower. The loonie weakened by the end of the day which allowed the January futures to rally to close at C$548.50 per tonne. The soybean meal and oil markets finished higher on the day, which continued to support canola crush margins in Canada, despite the stronger loonie. Strong soybean exports last week in the U.S. also provided support for canola as exporters shipped 2.5 million tonnes of soybeans in the week ending on November 5th.
The Bad: The main concern in the U.S. has been the condition of the winter wheat crop, especially in the Southern Plains. The overall winter wheat condition moved up to 45 per cent good to excellent. The condition in Kansas also improved to 31 per cent good to excellent, but the condition of the crop remains well below the 50 per cent average of the past five years.
Th Ugly: Soil moisture conditions in Ukraine continue to be touted as much improved from last year, but the problem is that the moisture has fallen mostly in the western areas of the country. This region produces about 20 per cent of the total winter wheat in the country. The eastern growing areas are the large production regions and soil moisture (like that of neighbouring Russia) conditions are very poor. Rains are urgently needed to help boost soil moisture levels before the winter sets in.