Glacier FarmMedia COVID-19 & the Farm

Wittal: Nowhere for canola futures to go but down

Nov. 26 — With the U.S. markets closed for Thanksgiving there wasn’t a lot of activity on the Canadian side today.

The Canadian dollar closed down 1.47 cents today at US94.17 cents.

The Dow Jones December quote closed down 179 points at 10,263 today.

Crude oil closed up $1.73 today at US$77.96 per barrel.

Canadian canola futures were unchanged to down $3.40 per tonne today.

January Western barley futures were up 90 cents per tonne, closing at $157.50.

Without beans there to support canola today, and with the possible threat of a strike by CN engineers that could delay canola shipments, the futures had little choice but to drop today.

The Canadian Wheat Board’s November pool return outlook (PRO) was released this afternoon and it was a bit of a nice surprise to see wheat values were increased $1 to $10 per tonne for some classes and grades of wheat.

Durum and malt barley values remained unchanged and feed barley values for the A pool are up $7 per tonne. The B pool has been announced at a starting value of $152 per tonne.

World durum production is estimated to be 39 million tonnes, which is more than adequate to meet demands and is the reason why the CWB only accepted 40 per cent of durum on the A series.

Malt barley values may come under further pressure as the Australian crop is now estimated to be 7.8 million tonnes, 1.8 million larger than last year’s. If the harvest is favourable and they get good quality, you can expect world malt values to come under heavy pressure for the balance of this year and next.

That’s all for today. — Brian

— Brian Wittal has spent over 27 years in the grain industry, including as an elevator manager and producer services representative for Alberta Wheat Pool, a regional sales manager for AgPro Grain and farm business representative for the Canadian Wheat Board, where he helped design some of the new pricing programs. He also operates his own company providing marketing and risk management advice for Prairie grain producers. Brian’s daily commentaries focus on how domestic and world market conditions affect you directly as grain producers.

Brian welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts. Contact Brian today.

COPA Medallion COPA finalist in 2012, 2014 and 2015.
©2021 AGCanada is a production of Glacier FarmMedia Limited Partnership. Any affiliated or third party content is the property of its respective owner and is used with permission.
Please refer to Copyright Page for details.
Click here to view our Website Terms of Use.