Jan. 21 — Markets bounced back nicely today to the point where they have almost regained all of the previous day’s losses. Corn was up five to six cents per bushel, beans were up 21 to 28 cents per bushel, wheat was up 20 to 22 cents per bushel and canola was up $8 to $11.50 per tonne. Western barley was unchanged.
Changes in weather forecasts for parts of Argentina have pushed off possible showers again, which will continue to build further yield loss concerns into the markets.
On the other hand, Canadian canola crushers are backing away from buying canola right now, as their stocks of oil are building to the point where they are becoming burdensome.
There is an oversupply of oil right now and this is backing everything up.
If this situation doesn’t resolve itself to allow crushers to continue to buy and crush canola, we will see a further buildup of carryover stocks, which will not help futures markets going forward.
Crude oil bounced around and finished up $1 to $3 a barrel.
The Canadian dollar finished up marginally to close at US79.30 cents.
As I mentioned yesterday, this will be the type of choppy trading that we can expect to see for some time with the market dynamics the way they are right now. These ongoing issues and uncertainties in the markets are going to keep the trade and speculators on edge and that no doubt means more volatile trading ahead, as there will be a lot of reacting to rumour and panic profit selling taking place at any time and for almost any reason.
This will make for interesting times ahead.
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.