Hot, dry. Hot, dry.
(A little less Sahara desert, please.)
This week there were big declines in crop ratings across Prairies as everything is burning up. Unless you are one of the lucky ones with a random thunderstorm, rainfall is quickly becoming a distant memory. *sigh* The weather will be what it will be and you will sadly never be able to control it. You can, however, control how you market the grain you hopefully manage to pull off something decent off your fields. Farmbucks is here to help you find buyers and prices you didn't even dream possible!
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Markets were hit hard early in the week with a few rainfall events and better (for now) outlooks for corn and soybeans.
Another USDA report comes out on Monday.
Canola: Canola is the exception to the other grain/oilseed markets this week. Although it did experience some limit-down moves early in the week it will end the week limit-up, making fresh new highs in the new crop Nov., Jan. and Mar. futures. Blips of rain events occurred here and there across the Prairies but the ongoing heat blast and widespread lack of rain continues to worsen our yield outlook. On the other side, soybean futures have been sluggish—the U.S. soybean outlook remains optimistic for a good crop as weather forecasts have recently improved.
Looking at prices:
Old crop bids are down around $21.34/bu
New crop levels are up around $19.40/bu (up over $20/bu in Manitoba)
Wheat: Futures were hit hard early in the week and failed to recoup its losses. Spring wheat conditions are bad (nothing new there) however the market remains pressured at this time as there's still a heavy U.S. winter wheat crop and good wheat production estimates for Russia, Ukraine, the EU and Australia.
There have been a few pop-up wheat specials from mainline companies. Most are not looking for large amounts as they start to wrap up old-crop wheat movement.
$10+/bu for new crop 1 CWRS 13.5 this week still available.
Barley: More great bids available. Barley really doesn't like hot and dry. Although acreage was up sharply across the Prairies this year, the yield outlook still declines. As previously mentioned though, we aren't the only ones that grow barley in the world; big crops are expected in Russia and Ukraine and our barley is expensive compared to Black Sea region. If you want to see even higher barley prices, you'll most likely need corn to rally (on bad weather). Note that there are still good prices to catch such as $6.30/bu FOB (in central Alberta).
Peas: Quiet this week, no drama here. Markets have yet to respond to our declining conditions.
Around the farm: She’s dry as a bone. And to think, crops were off to such a good start here! I returned home from a little Saskie holiday … yes you heard that right. If you are curious, we went all out on Lakes—Pierce, Emma, Waskesiu and Kimball. I came home to find that my front lawn is dried out and crunchy so you can imagine, my crops are experiencing heavy stress.
I went for a quick crop check last night. Crops are advancing faster than usual with my canola surpassing its full bloom stage and my wheat finished flowering. The picture at the top is one I took of my CWRS, Wheatland on the left and Landmark on the right. Which do you think is performing better? I contemplated spraying fungicides, but as I looked into our forecasts there's just more of the same hot and dry with VERY slim chance of thundershower. We have yet to get one, so I opted not to spray. I think this is my first July ever where I did not spray my life away protecting my crops.
Anyhow, I'm going to go enjoy yet another cold one on this HOT day and may even go find another lake to jump in!