Jan. 15 — Grains were mixed today but oilseeds found support and canola pushed back up to recent resistance levels yet again.
Corn was down two cents a bushel, beans finished up five to 23 cents a bushel, canola finished up $5 to $7 per tonne and wheat finished down five to seven cents a bushel.
Crude oil was down $1.88 to close at US$35.40 a barrel.
The Canadian dollar was down and closed at US79.97 cents. The dollar dropping and strength in soybeans lent support to canola, even with crude falling again.
Soybeans were up on continued news of dryness concerns in South America and some renewed export sales activity.
Feed grains remain under pressure as corn futures continue to fall and large supplies are just not being consumed fast enough to reduce the surplus. Forecasts for warmer weather ahead are not helping feed grains either.
Negotiations between dock workers and British Columbia’s ports are ongoing and there has not been a notice for a strike or lockout given yet, which is a good sign as long as they continue to talk. But now truck drivers at the ports are also in a position to strike and if either of these groups do go on strike, the others will no doubt honour the picket lines and everything could be at a standstill. Container freight will be the hardest hit as nothing will move if trucks aren’t hauling.
Next week is the inauguration of the new U.S. president and no doubt markets will eagerly await the arrival of this event as if it were going to change things magically overnight.
If nothing else, here’s hoping it helps to keep the markets in a positive mood for awhile. 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 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.