Finally! Finally, it seems like we are through winter in most of Alberta, some snow and sleet has popped up in some areas, but I think it is safe to say spring has finally arrived. Farmers around Alberta are gearing up for seeding, and with the snow melting away fast it’s almost time to plant some seed for next year. I am interested to see what most farmers seeding intentions are, with Oat prices being down this year and there seems to be a ton of carry over into next fall I am curious how many folks will be putting Oats in the ground. Canola and barley will surely be plentiful across Alberta, if we get a little bit of moisture throughout the year that is. I have heard once again many farmers will be seeding most of their acres in Hard Red Spring Wheat. With the uncertainty going on across the pond in Ukraine and grain exports uncertain from that area, it could lead to another up and down marketing season next year, although there are major upside as global demands increase over time.
Whatever our farmers are seeding it is still a very exciting time of year, it is the start of a new crop year, playoff hockey is in full swing, and baseball has just begun! We can finally shed all those heavy layers we were wearing outside and bask in the sunlight. So, let’s hope for a nice spring, a little bit of rain and a little bit of sunlight throughout the summer and we will all be calling our favorite Agfinity trader next fall for off combine movement because we filled our bins to the top!
Because Farming is Forever
Market Report – Bryce Taylor
Happy Spring everyone and welcome to this weeks Agfinity Market Report. In the news last week, BNN Bloomberg reported that CN rail moved a record amount of grain in February from Western Canada to Vancouver Port moving 2.4 million MT, CP rail also moved a record amount in January, more than 2.3 million MT. This is reported to be nearly double year over year. The milder weather helped with the transport of these important crops. Director of the Alberta wheat commission Dave Bishop said delivery was on time as farmers were able to transport grain to elevators easily this year due to the mild weather.
In other good news, for farmers worried about carbon tax on propane for drying grain and livestock building heating. Bishop said that there is a private member’s bill going to the Canadian Senate in Ottawa that exempts farmers from carbon tax on propane for drying grain and heating livestock buildings. Conservatives, NDP, Bloc and the Liberals are poised to pass the private members bill soon.
In the grain markets, nothing new to report on oats. Old crop milling bids remain almost nonexistent. The best bet for oat sales today continues to be the feed market with many feedlots having incorporated these into there feed rations. Oat bids have been staying flat at $4.00-4.25 Delivered per bushel in Central Alberta.
Canola has been showing some moderate gains over the last couple of weeks but showing no signs of which direction the market will take. There are still historically strong values available so now may be a time to sell some percentage of what is stored. Canola bids around $18.00/BU Delivered are available for April and May through Central Alberta and Saskatchewan. Most Canola bids start to soften moving into June and July. New crop indications are $15.50-$16.00/BU Sept-Oct.
Currently for wheat, graded premiums are almost nonexistent. Currently bids for April and May are around $11.20/BU delivered in Central Alberta and Saskatoon. Feed Wheat bids are available at about the same level as graded wheat. The war in Ukraine is still helping to keep the wheat prices at today’s level. Currently there are no indications of volatility coming up in the market as world supplies are still strong and Canada has a low market share of the world market.
Barley prices remain flat to softening with bids available for April-May at around $8.90/BU or roughly $410/MT delivered Lethbridge. Indications we are seeing from our buyers is flat to softening prices into June-July with bids available at $400-405/MT delivered Lethbridge. New Crop indications for Sept-Oct are $7.50-$7.60/BU or $350-$360/MT delivered Lethbridge. There are some feed lot end users that are indicating that they have good coverage into New Crop, but opportunities still exist for some sales for quick movement and into June-July.
The pea market remains unchanged, yellow peas remain to be soft. #2 Green Peas have been fetching $14.50/BU prices Delivered to Central Alberta for a few weeks which remains a hot opportunity for anyone who has them. New crop #2 Green Pea prices are available at an indicated $13.00/BU for Sept-Oct.
Sellers Tip: Currently futures and domestic prices are seeming less volatile and look to be flat to softening for June-July. Please call us today on 1-888-969-5552 to talk about pricing and movement strategies like selling small percentages of what you may have stored. We are always on the lookout for premiums or special programs available.