The Good: Canola was the only bright spot in the commodity markets today with nearby January futures trading higher to C$559.60 per tonne. Now most of the move was making up for yesterday’s increase in soybean and soybean oil futures yesterday. The small increase in the January futures was enough to move values back to contract highs. This came despite the drop in soybean and soybean oil futures.
The Bad: The drought monitor in the U.S. is still showing a significant area of the Plains region and western Corn Belt remains classified in a severe and extreme drought. The driest areas are located from the Texas Panhandle to western Nebraska. This comes despite a dry forecast for the region over the next ten days. The crop the main HRW wheat growing areas is still under significant stress and time is running out for proper establishment of the crop.
The Ugly: Crop conditions in Argentina continue to worsen despite rains last week. The Bolsa des Cereales dropped their estimate of wheat production to 16.7 million tonnes. The USDA on Tuesday lowered their estimate of production to 18 million tonnes from 19 million tonnes in October. The critical stages of crop growth have now passed with most of the crop in the filling stage.