Glacier FarmMedia COVID-19 & the Farm

Wittal: Rains not yet dampening canola futures

June 18 — I am off on a road trip today until Tuesday so my report is based on values currently trading today before the close. There will be no reports Friday or Monday.

Financial markets are up so far today but trade has been mixed. The U.S. dollar is currently up four-tenths of a cent and the Canadian dollar is also trading higher.

The Dow Jones June quote is trading up 92 points at 8,585.

The Canadian dollar is trading up 0.33 cents at US88.47 cents today.

Crude oil is currently up 34 cents, trading at US$71.37 per barrel.

Corn is trading down four to five cents per bushel from yesterday. Beans are trading mixed, up eight cents per bushel for old-crop to down six to 14 cents per bushel for new-crop today.

Wheat is currently trading down one to six cents per bushel on the various U.S. exchanges today. Minneapolis July wheat futures are trading down 4.5 cents per bushel today.

Canola is currently trading up $5-$7 per tonne at this time. Barley is sitting at $175.50 per tonne.

Weekly export numbers for corn and beans were on the high end of expectations, which is seen as supportive to markets, but improved crop growing conditions in the U.S. are starting to take the shine off of the recent market rallies as traders start to pull back. Wheat export numbers were below expectations and that is evident today as the futures are trading to the down side.

Scattered showers across the Prairies haven’t amounted to too much yet so canola futures are continuing to find some strength to push upward. Crusher demand seems to be holding steady, which is helping prices remain stable, but export business seems to be dropping off the past few weeks, and if that trend continues, futures will be under pressure to drop in order to try to attract new export business going forward.

That’s all for today. I will be back next Tuesday. — 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.
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