Rains fall. Crops grow.
(Enjoy your long weekend.)
Spend more time sipping and snacking in your own backyard and fields this weekend. Farmbucks will give you that quick snapshot of current crop bids around you, so you don’t miss another opportunity to sell your grain for more, and can get on with your May Long!
A much-needed rain—and even snow—fell across the Prairies and I could almost hear the sigh of relief from farmers (I know it wasn’t just me). We needed that. Even I had some canola just sitting in dust waiting for moisture to come help it grow. It was nice to receive any form of moisture as my fields were covered with a blanket a few inches thick of white sticky snow. And now we cross our fingers that the cool and cold nights have minimal crop damage. Last night was our hardest frost yet and I found a few yellow canolas this afternoon. I know some will not make it and others that might (see picture above with the slightly yellowish one in the centre). We shall see what the damage actually is in another couple of days. I think the cereals will be OK. I will keep you updated and if you see me pulling out my drill again in my Instagram stories, well, you'll know something got fried.
Canola: The soy complex has been giving back some of its recent strength and so has palm oil. Rain events fell across the Prairies and the U.S. and the forecast is calling for more, which is easing production concerns. Soaring COVID-19 cases in India is weighing on any new demand for palm oil.
July futures are wild with limit up action early in the week and limit down action afterwards. Many canola buyers have rolled their old crop bids to be priced off the Nov. futures as they seem to have most of their needs covered off and they don't want to carry any high-priced canola into the highly discounted new crop. Nov. futures traded earlier in the week around that $960/MT level and finished off the week at $883/MT.
The Nov. canola futures haven't had the wild swings like the July futures. Rather they have more steadily lost steam this week. They are ending the week at about $707/MT vs. $742/MT last Friday.
The best new crop bids today are for Nov.-Jan. delivery and are sitting around the $16.30/bu mark.
Wheat: A few factors pressuring markets lower this week: The U.S. spring wheat planting progress is way ahead of the average (by 16%). Rains fell across the Plains and Prairies and the forecast has more in it. The Kansas City crop tour finished and reported much higher than anticipated winter wheat yields (+15 bu/ac higher than the five-year average) driving markets lower.
CWRS and CPSR futures have lost around $1.10/bu since their May 7 highs just two Fridays ago.
Feed wheat prices are still holding up nicely.
Barley: Barley prices continue to hold strong. Bids are up and down depending on who and where.
Peas: Pea markets continue to be quiet. Have heard of some rumblings for small amounts of green peas coming from UAE and Nepal.
Around the farm: The seed drill and trucks are put away just before the rain and snow fell here. In all, I believe it totalled just over an inch. What a good feeling that was! Minus the freezing -3°C to -5°C degree cold nights, we’ve had to endure. I am noticing some yellowing going on with some early seeded canola plants and I have yet to check my wheat. I am crossing my fingers and am hopeful that no re-seeding is necessary. Either way, I will keep you in the loop and know more next week.
We spent this week, fixing and cleaning equipment and sorting paperwork as we have been away in the fields for so long. By the way, just a reminder for all you farmers out there to make sure you know how the chemical rebate programs all work this year. I know they are frustrating and make you curse but by doing my homework and making just minimal changes to what I’m planning to spray, I have found a way to get potentially get more than $5,000 back. *It was to do with BASF and their $1/ac back on Liberty. See how you qualify, if you grow Liberty Link canola.
Enjoy your May Long Weekend!