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Market Recap: 

Big in the news this week—weather! Blistering HOT and dry temps hitting the Prairies and bordering States. There is an “unprecedented long duration heat wave” expected for at least the next seven days, where we will experience temperatures in excess of 30 degrees. It is possible for a few communities in Alberta to set new all-time records, according to Environment Canada. Meanwhile, there is also a significant rainfall event expected in the coming days in the U.S. Midwest.

Watch for two important reports coming out next week. StatCan on Tuesday and USDA on Wednesday. 
 
Canola: Rallying on news of the heatwave hitting the Prairies but it’s not that easy, as soybean markets have been under a lot of pressure (from spec funds running out the door last week, to “good” U.S. growing conditions and rain forecasted over the Midwest). We shall see what the USDA Wednesday release says as rumours are swirling that soybean acres could be reduced, thus exemplifying the need for a good crop in their tight supply situation. Canola and soybean crops still have to make it through a projected hot and dry July/August. Lots of volatility ahead.

Looking at prices: 
Old crop bids reached $20/bu
New crop levels are up around $17/bu 

Wheat: Minn. wheat is one to watch! Futures are back to trading over $8 which, by the way, quite a few traders have considered as their selling point, especially if it looks as though you have a good crop coming along. However, the coming heatwave is also extended across North Dakota, Minnesota, Montana where millions of spring wheat acres are close to or already at the brink of failure. It's bad, which is why Minneapolis futures have been steadily on the rise this week. It is “possible” for this market still to breakout even higher if conditions continue to deteriorate the spring wheat crops. 

As for the Kansas and Chicago wheat markets—it’s the same old story. Good crops and yields are coming off. 'There's lots of wheat.' Everyone is waiting to hear more on what kind of protein levels farmers are pulling off. It’s anyone’s guess as to whether or not the USDA report can give a lending hand of support.

Targets of $10/bu 1 CWRS 13.5 triggering this week (perhaps even higher today).

Barley: Old crop barley bids are still strong if you can find a buyer for it.

New crop prices still remain at a big discount to old crop prices. Corn will have to turn around and go higher if we want more support for the feedgrains.

We have lots of barley acres planted here in Canada (will see how StatCan adjusts it in Tuesday's report) and pending the extreme heat and dryness doesn’t drag out even longer, overall we may still end up with a crop size larger than last year. Also, Europe is getting ready to harvest its crop and right now buyers around the world can source their barley cheaper than ours, which will keep pressure on new crop bids. 

Peas: Nothing new on bids to report as they have been steady. Demand has been quiet. Pea acres in the U.S. and Canada are down so supply is projected lower (again, watch for next week’s reports). Prices may see added strength if this hot and dry weather continues and once China comes back to buy more. 

Around the farm: Slower week this week. We wrapped up all our in-crop herbicide passes earlier in the week. I switched out my fat tires on the sprayer to the skinnies. Now, getting ready for the next round. Fungicides are delivered and ready to go. We'll see what’s worth spraying in a week or two after this heat wave transpires. Just waiting on the crop now. 

I don't know about you but when it's this hot I just wanna be by a lake with a cold drink in hand. Although this heat may not be the best for my crops, I may as well enjoy it! I hope you can do the same. Enjoy!

Cheers!