What’s happening in Agriculture?
Though weather concerns are still prominent throughout grain growing regions in the US and Canada, markets seemed to have found their resistance levels lately. Nevertheless, spring wheat closed 13 cents higher yesterday and is giving not-quite-ready sellers another shot at $9/bu gradable HRS wheat for fall delivery. Might be your last chance for a while! Just saying…
Canola markets have also been trying to hang on, and most buyers are still offering higher basis levels for old crop delivery with bids currently ranging between $12-12.20/bu delivered. New crop targets have also been hitting around $11.20-11.25/bu delivered, but with current weather forecasts, bullish sellers may be rewarded by setting targets appropriately. Give us a call to discuss what price might be worth shooting for!
For the next 10 days, hot, dry weather is once again expected to be the leading headlines for western Canadian crops. If you get a downpour in the next 1-2 weeks, consider yourself to be one of the fortunate few!
And if you’re the kind of grain marketer who needs more hands-on information, reports from the road throughout the prairies and the US seem to all have a similar “not-too-bad” theme. That information could go either way, but it does shine a bit brighter of a light on current forward pricing opportunities.
Markets have been scouring for bullish news lately, and many analysts seem to be ignoring neutral and bearish information. When this happens, market corrections tend to follow.
If your crops are looking decent, try to play these ongoing weather concerns to your favour! Panic-based decisions are a two-way street, and buyers may continue to hit targets close to recent highs.
What’s happening in our domestic
Feed Grain market?
Feed Barley may have seen the highs of the summer come and go last week, but prices seem to be softening slower than they ramped up.
Feedlots and resellers are still needing b
the question is when? August is quickly getting covered and buyers like to leave some space in September for off combine purchases at lower levels. And depending on the outlook, the lower the price at harvest the more they will pile up. Which means the next best opportunity is currently October-December, and we are still seeing bids between $4.35- 4.65/bu delivered into Lethbridge for this time frame!
has still been trading around $6.00/bu delivered for the nearby, but most buyers are not willing to go past August. And, as it happens, neither are sellers…
There is more talk of
coming into the lower mainland (
Abbotsford and Chilliwack area
). If this happens, it will squeeze demand and put a ceiling on the feed grain market.
Until harvest comes and sellers know their quality specs, opportunities could get tighter over the next while. With Feed Wheat, the price usually doesn’t change rapidly, but the demand can quickly disappear.
What’s going on with Peas!?
Currently seeing flatlined demand for both green and yellow edible peas and harvest pressure could drive prices down even further. Old crop yellows are still trading for $9.75-9.93 delivered, so don’t delay, as most new crop bids are more than $1/bu lower at the moment!
Bids typically will recover mid fall and delivered targets up to $9/bu for greens and up to $10/bu for yellows are anticipated to hit.
Don’t have time to watch the markets or shop around?
Well!! That’s what we’re here for!!
Put us to work!
Good, bad, or neutral, we’d love to hear your thoughts. Please tweet us @Agfinity or chat with us on Facebook.