Did you catch this week's big market moves? Higher prices, more bids and specials everywhere! They came out of the woodwork for both old- and new-crop canola, wheat and peas. If you have the Farmbucks app on your phone you already saw the amazing deals! (make sure your notifications are turned on) Or go ahead and create a price alert so that you never miss out on what you are looking for!
There's a lot going on in markets like these. Futures are wild, basis levels are changing, too, and it’s all happening quickly so stay in the loop with Farmbucks. We are here to help you follow markets, find the best-selling opportunities and make sure you never miss a beat! And don’t worry, our canola deals stream 24/7, whether you’re a member or not because these deals are too good not to share!
Weekly Market Recap:
Markets take a breather today after big gains all week. Palm oil makes new record highs supporting vegetable oils, wheat finally turns higher. Corn and soybeans also making their way higher.
Deals of the week: $12.25+/bu old-crop CWRS, $24.50+/bu old-crop canola (Manitoba), $18.68/bu new-crop canola (Manitoba)
Canola: Big recovery! Canola soared higher Wednesday and Thursday and ended this week with additional gains (though not as steep). Old-crop futures are back reaching for the highs they made a couple of weeks ago and new-crop futures are on their way, too (previous highs made November 2017). Prices are good, however our exports are lacklustre. Most canola is headed to local crush plants. Alberta crushers are filled nearby and are looking for canola delivered April out. Some basis levels have widened since the futures charged higher, too. Still, good prices are available for both old- and new-crop.
Even though South America has received rain this week, there was lots of chatter that its soybean numbers are still lower than what the USDA reported last week. Another lending hand to support canola is China's purchases of more U.S. soybeans and spec funds moving back in. But leading the charge is palm oil, which has hit all-time record highs. Indonesia, the world's largest palm oil producer, announced that it would limit palm oil exports in order to curb soaring local prices and Malaysia, the world's second-largest producer, is facing supply problems due to labour shortages. This is causing countries to turn to soybean oil in its place, driving up soybean oil prices as well. Vegetable oil markets are strong right now.
Wheat: Finally turned higher with some gains this week mostly due to the rising tensions between Russia and Ukraine. Even today's talks between the Russian and American diplomats failed to de-escalate the situation. As you all know, Russia is the world's largest wheat exporter and any conflict will deter shipments from them and the black sea region and send buyers looking for wheat elsewhere. Also, worth noting, is that U.S. wheat ending stocks are not predicted to climb next year and the U.S. is facing drought conditions over its principal winter wheat areas (will find out more on its condition when it comes out of dormancy in a couple of months).
Barley: Barley bids are holding strong and new-crop bids look pretty attractive. Many line companies are offering up bids for feed barley too. Corn futures rallied this week as well providing support (despite rains in South America). Wheat moving higher also helps support our barley prices. Taking a look at our cattle industry and our shortages, it’s no wonder barley is holding up. The CP rail and trucks are having a hard time keeping up to our feedlots' demand, moving corn in from the U.S. as our barley stocks are tight. Check out the latest article from RealAgriculture here.
We have seen some malt barley bids increase this week.
Peas: Buyers are looking for old-crop yellows to fill their commitments. The green pea market is quiet.
Oats: Oat futures are not strong but did make a comeback mid-week before dropping again today. Cash prices seem to bounce around a little bit here and there, but are definitely off the highs.
Around the farm: Nice to see all your ingenuity for farm-made Zambonis last week! I love it. This week was a mostly quiet week with a mix of everything at the farm: snow, wind and rain! Of course, it meant more plowing and shovelling. That's how I stay in shape around here ;) My husband and I got to enjoy a clear bright night sledding across fields and 'ditch banging' (don't take that the wrong way)! It was such a great little escape for a night.
With big market gains this week, I spent time re-examining my numbers and marketing grain. Through my conversations, I did also discover that our fertilizer prices have come down a bit. Yes, I'm one of those farmers who missed the boat and didn't pre-buy. Trust me, I'm kicking myself for not buying last fall when I had the chance, and when I typically do!! For a little perspective, a blend that cost me $71/ac last year is now $175/ac! Thievery! So, you can bet I'm investigating alternatives and I'm going to shop fertilizer out hard this year!
Anyhow, I'm going to take a break now as the markets did and enjoy a little weekend time. Hope you do, too!