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The. Good. Stuff.
(And boy is there plenty.)
What a whirlwind of a week! From attending an AgSummit in Calgary to a couple grower meetings this week, let me fill you in on what I've just learned. In short, there’s many reasons to be excited as a farmer heading into this year!
Generally speaking for new-crop, there's still a bullish sentiment towards canola. There’s also high-risk and volatility expected for wheat markets (if you wanted to forward price any crop, this is one everyone is hinting to look at), a solid yellow pea market (not so much for greens) and barley bids remain well supported. Oats may also be a good crop to grow based on returns per acre and our oat crop should be decent as it's not majorly grown in the more dry areas of the southern Prairies. Weather across North America is being watched closely as the U.S. is reporting one of THE worst ever winter wheat ratings for this time of year. Supposedly, there is a cold snap that may further damage the exposed winter wheat crop over this weekend.
No matter what U.S. weather brings or when you start to seed your crops, just remember that Farmbucks is always here and always has your back with the most up-to-the-minute bids, including free, non-stop canola bids. Join the premium Farmbucks and secure prices you didn’t think were possible—and do it in a fraction of the time! Keep scrolling to download our app.
Weekly Market Recap:
Markets end the week on a high!
Deals of the week:
$26.50+/bu old-crop canola
$23.00+/bu new-crop canola
$14.30+/bu old-crop CWRS
$13.30+/bu new-crop CWRS
Canola: Staying strong! As mentioned, canola is the crop that seems to have the most bullish sentiment behind it right now. Even though it was reported last week that US acres are estimated to be higher this spring, the veg oil complex is battling the biofuel vs. food movement. Some analysts are predicting Canada's canola acres may even drop a little this coming year and we also have weather concerns creeping in. Canola is also supported by the unknowns surrounding Ukraine's sunflower production this year.
The USDA had reported much larger soybean acres going in the US ground this spring which made the market drop last week however it most recently raised its US soybean export forecast and made cuts to its South American estimates from 127 down to 125 million tonnes. China's demand for US beans has remained strong even at recent high prices.
All in all, the canola market is a strong performer right now. New crop prices reach new highs this week with offers reaching over $23/bu!
Wheat: Wheat markets are fragile. The world isn't starving for wheat just yet however, poorer nations like Africa are importing cheaper Russian wheat. Any news headlines that hint at progression in peace between Russia and Ukraine make wheat futures fall fast and hard (as seen last week). A few factors supporting wheat right now are the uncertainty surrounding the Ukrainian's ability to harvest their winter wheat crop and get it to market, the terrible US winter wheat crop conditions and surprisingly low US spring wheat acre intentions.
New-crop CWRS bids reach new highs. Bids reached over $14.30/bu for old crop and $13.30/bu for new crop this week! CPS bids aren't too far behind either. Check it all out!
Barley: Barley remains well supported by our limited supplies and the corn market. Old crop corn futures continue to trade range-bound at the top end of charts. Focus has shifted to new-crop. New-crop corn keeps climbing higher and higher! Obviously, last week's shockingly low USDA corn acreage estimates are lending a hand to this wave higher (as is the Ukraine war). Attention is also on Brazil's crop. If the US is to cut their corn acres as expected and Ukraine only grows half a crop, Brazil is going to need rains to pull off a good size crop. Don't forget the US is also dealing with its own drought conditions heading into spring planting.
China's demand for new crop barley has been picking up. Our new crop barley prices are still competitive in the world market.
New crop barley bids climbed to $9.00/bu!
Peas: Pea bids are mixed this week. New crop bids are waiting to see what Ukraine will or will not grow and what China's demand will be. High feed prices are supporting the pea market.
Oats: Oat futures on fire! A new all-time-high was reached by the nearby May future yesterday. Although most buyers have their old crop needs covered, the sky-high futures will provide support and/or uplift cash prices. It is expected that more oat acres will be seeded across the Prairies and barring any weather woes, we should pull off a decent crop as mentioned in the intro. Demand for new crop is expected to be robust.
Around the farm: Busy busy! Last weekend I squeezed in one last snowboard trip in the mountains with my sister before the grind of the week began. Conferences, grower meetings, trucking grain, fixing tires, and reviewing marketing and strategies. Everything seems to be laid out on the table. Lots to do still as spring nears so I'll be happy to take the weekend to catch up on a few things.
Have a great weekend!
Cheers!
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