Some more, please.
(We like treats like these.)
Trick or Treat? Hand me over all the treats! Who actually likes tricks anyhow? Halloween is just around the corner and we are spook-a-liciously excited about markets these days! The recent highs just got even higher this week. And although Halloween is full of scary goblins, ghouls, skeletons and witches, we want you to make sure you know where to find the sweets! Ahem, come knock on the Farmbucks’ door!
Go ahead, sort through your kids' candy, collect the parent tax (i.e. as much candy as you want!), and sink your teeth into these top bids. Things are cooling off outside but it’s fall, which means the bids usually heat up. This week is no exception and we’ve been seeing some very enticing numbers. You will see them all, the second you download our free app, including 24/7 streaming canola bids (subscribed or not!). It’s actually scarier to think about life without Farmbucks because that means your marketing takes twice as long and you know half as much. Don’t trick yourself, treat yourself with our app and start finding prices you did not think were possible!
Weekly Market Recap:
Pretty darn good week for markets specifically for corn, wheat and oat markets. Bank of Canada kept its interest rate at 0.25% and hinted at an increase coming in Q2 2022. Natural gas prices are reacting extremely sensitive to weather forecasts. There's concerning chatter about tightening global ending stocks for the coming year as the extremely high fertilizer prices will influence farmers to restrict use which then will result in lower yields. Pressure is building for farmers to grow a good crop next year.
Deals of the week: $12.77+/bu CWRS and $22.72/bu canola
Canola: Canola is still clawing its way higher. Short supplies and the need for biofuels/energy supplies are supportive factors. Canola made gains this week with Jan. futures closing at $959.80 ($34.50/MT or about $0.78/bu higher than last week's close).
On the positive: Malaysia's palm oil production is smaller than it could be. Farmers are struggling to harvest their crop as the country battles labour shortages due to the spread of COVID-19 and migrant workers required to be fully vaccinated.
On the negative: Soybean futures are struggling. Weekly export sales are low and disappointing. Supply looks like it will grow from the current U.S. crop being harvested, to Brazil receiving rains and talks of more acres being planted due to high fertilizer prices.
Canola cash bids reached $22.72/bu earlier in the week. Keep in mind that targets higher than this probably triggered, as well.
Wheat: Working higher and higher! Wheat futures are in rally mode. Kansas futures are close to hitting the $8/bu mark. Uncertainty with this year's winter wheat crop is supportive. Winter wheat farmers in both Canada and the U.S. are struggling to get a crop in the ground due to heavy rains and it's also hurting the crop that is already seeded.
Of the wheat markets, Minneapolis’ is the strongest. Its Dec. futures gained $0.39/bu on the week closing at $1,052.25. Even at such a high level, this market could have more in it. This one is all about supply/demand. Demand is strong for high protein wheat and supply as we know it is tight. China reported smaller reserves of high-quality milling wheat. Russia is still talking about restricting exports. Australia's ports may become bottlenecked. The rising corn market is helping, too.
Morocco announced that it will drop its import duties on durum for the next little while which is great news for us! Being its top exporter, we shall see if bids increase in strength over the coming weeks.
Trends remain up for all wheat. Bids reach $12.77/bu for CWRS 13.5 and $11.50/bu CPS. Pay attention though as some feed wheat bids are higher than current CPS bids at $11.70/bu.
Barley: Bids have slightly increased. Rising wheat and corn markets are supportive factors. Corn made impressive gains this week which will obviously increase the price landed here for feed buyers. Corn looks strong right now with high energy prices driving demand for more corn for ethanol production. As per usual, watch corn futures for barley price direction. Currently, we are seeing barley bids sit around $8.50/bu to just over $9.00/bu depending on location.
Peas: No news this week. Here's a repeat last week's comments: We have seen yellow pea bids adjust higher as line companies throw out specials to fill previous commitments. Much of our crop is destined for China and there may be less fresh demand in the coming months. If you want to move peas make sure to shop around as there is a wide spread in bids (as with every other commodity). Aim for $17-$18/bu in the southern Prairies.
Be patient with greens. More demand is expected to come!
Oats: Futures are flying high! Cash bids crept higher along with them. It remains to be seen how high it can go as there is no other grain source to replace oat products.
Around the farm: We returned home from a whirlwind of a weekend in the big city lights of Saskatoon and immediately finished up remaining odds and ends—putting trucks and trailers away, cleaning the grain dryer and placing a few more silage pit blocks. We also started another little fun project of putting up a driveway farm sign.
I actually look forward to taking my kids trick-or-treating this Sunday and not because I pick out my favourite candies from their bags but because as it's more of a quick get-together at all the neighbours/relatives’ houses. We trick-or-treat country style: everyone hands out a tonne of candy and we stop in for an hour, have a drink and talk farming before hitting up the next place. We only hit about half a dozen places and it takes allllll day!
Happy Halloween! 🦇