It had to happen, right?
(Red: Good for wine, bad for prices.)
Well, even though I wore green multiple times this week, there was little Irish luck to be found in the markets this week. Grain prices dropped dramatically for the first time in a long time. However, we have witnessed arguably some of the best grain prices we have seen in a decade or more across a wide variety of commodities, so, take solace in that! No doubt some of you found some opportunities while it might not have been right for others. Whether it’s up or down, black or red, Farmbucks will always find you the most up-to-date pricing in Western Canada.
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Canola: After new all-time highs recently, the hot canola market took some pretty hard hits this week before rebounding a little today. News making markets tumble are: South America is in the middle of harvest and so the world has access to an ample supply of soybeans, speculators collectively liquidated some long positions, and, guess what else? I’ve been told that Canadian crushers will start to import much cheaper canola from Ukraine to help with the supply shortage throughout this summer. The fact remains, supplies will still be tight (for both old and new crop projections) and the canola market will remain extra-sensitive to ongoing weather patterns. As I’m sure you all know, much of the Prairies is dry and it’s a growing concern.
Wheat: Lost some ground. The negative factors: The U.S. received some rain over large areas of their HRW acres. After a few years of drought, Australia is projected to pull off a record wheat crop and Russia's numbers keep getting revised upwards. That being said, Russia is closely watching production numbers and exports and trying to keep a handle on its food inflation. For now, it looks as though we are in for some short-term weakness.
Barley: Still good prices available, but be cautious as I have seen certain prices soften. It has been suggested, through conversation, that the feed crops would be the ones to sell and contract as the other commodities have a higher probability to explode higher in the future. New crop barley prices look to remain supported from strong export demand. This week, corn struggled and failed to continue higher, even after news of large purchases from China. If barley prices should increase, corn and wheat need to show more strength.
Peas: Both yellow and green pea, old and new-crop bids, softened this week. Be mindful of some of the great prices available and what that means to your bottom line.
Around the farm: Another Friday is here already! This week was similar to the last. Still hauling out some of my CWRS wheat although now it's more in mud than ice like last week. Lots of our snow melted off this week but luckily we still have some. It’s too early for it to all go away! Enjoy your weekend friends!