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Just A Quickie.
(Recap that is.)
For all you busy and hard-working 'dads' out there, check out our new Futures page! It is designed specifically for you to meet your marketing goals! It will also soon be available on our app. This one's for you! Happy Father’s Day to dads everywhere!
Weekly Market Recap:
- U.S. markets are closed Monday for the new holiday of Juneteenth AKA Freedom Day (which is a day that commemorates the end of slavery in the U.S.)
- Wednesday, the Federal Reserve increased its benchmark interest rate by three quarters of a percent, its largest interest rate hike in 28 years as it battles inflation and soaring consumer prices.
- A big ridge of high pressure is bringing very hot and dry temperatures across the U.S. Plains and corn belt for the next couple of weeks. You can watch more here if you want to!
- Stocks, energy, and grain markets are under heavy pressure this Friday with profit-taking and uncertainty leading into the holiday weekend.
- Watch for USDA's June 30 acreage report as it could be a market mover. Informa reported that soybean acres may be lower than thought as high-priced corn bought some acres. Soybean stocks are already tight with good exports. Overall fundamentals are bullish soybeans.
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- Wheat is down hard today and experienced the largest losses. There is some harvest pressure as winter wheat is being harvested in the U.S. and entering the pipelines. Even though the crop yields aren't anything to brag about, “You aren't going to run out of wheat during harvest.” Money flowed out of wheat markets. Funds didn't want to take any positions ahead of the long weekend, in addition, the U.S. dollar is high making U.S. wheat very expensive. There were many $15/bu bids for old-crop CWRS earlier this week.
- Crude oil crashed today on rumors that the Biden administration may ban crude oil, gas and diesel exports as he looks for ways to bring the price down. This downturn weighed heavily on canola (since it does contribute to the biofuel market), and vegetable oils. Canola bids are noticeably lower vs. last Friday, some as much as $2.50/bu for old-crop and $0.60/bu new-crop.
- The corn market held up fairly well today, all things considered. Stocks are tight. Ukraine's corn crop availability to the world market remains a big unknown. Biden claims that temporary grain siloes would be built along the Ukrainian border to help store and get more grain out of the country for export. The hot and dry weather is becoming a threat but will see how it transpires over the next couple weeks.
- Recent widespread rains fell across the Prairies and alleviated many dry areas. This rain is putting pressure on new-crop barley bids.
Around the farm: We received a good 2-plus inches of rain this week. I raced to get all my wheat sprayed before the rains came, which I'm glad I did! I didn't want to have to go put my big tires back on the sprayer when I just changed them! Now I'm watching the weather closely for the next spraying opportunity to start spraying my second pass in the RR canola.
In other news, I've heard of summer urea price got down to $790/MT! I still haven't bought but it’s something else I'm watching closely. I'll keep you in the know!
Happy Father’s Day!
Cheers!
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