Wittal: Crude oil drags on canola, beans

Jan. 27 — It was a negative day for most of the grains in the markets today. Oilseeds started off the day in an upward move, but that didn’t last long once crude oil started to trade lower and pulled beans and canola down with it.

Continued weather forecasts calling for rain throughout Argentina in the coming week also put pressure on the markets today.

Corn and wheat could not fight off the pull from beans, so they ended up with losses for the day as well.

The Canadian dollar was down marginally so it didn’t have a real impact on canola today and that, along with limited farmer selling, kept markets from dropping any further.

Corn is down 16 cents a bushel, beans are down nine to 33 cents a bushel, wheat is down three to eight cents a bushel, canola is down $5 to $8 per tonne and barley is up $3 to $5 per tonne.

Crude oil fell over $4, to close at US$41.58 per barrel.

The Canadian dollar fell slightly, closing at US81.52 cents.

I am curious to see how the Canadian dollar will react to the federal budget released this afternoon, when the markets open tomorrow.

There don’t seem to be a lot of positive market forces at work this week, with limited export buying, improved weather forecasts and technical analysts taking a more bullish tone overall.

This will be a week to hold your breath and hope the markets don’t fall apart before the Chinese are back in buying. The sooner the better!

That’s all for this 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 a grain producers. He welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts.

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Brian Wittal

Brian Wittal has 30 years of grain industry experience and currently offers market planning and marketing advice to farmers through his company Pro Com Marketing Ltd.

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