Our online grain markets columnist Brian Wittal welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts. Contact Brian today.
May 12 — The U.S. Department of Agriculture’s supply and demand report came in with reduced overall world stocks for corn. Add to that the potential for reduced acres in the U.S. due to seeding delays, and that was enough support to push it to four-month highs.
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Crops in Saskatchewan are developing in opposite directions, the province’s latest crop report said. Growing conditions in the province vary, with some areas receiving enough rain while other locations are experiencing crop stress due to hot, dry conditions.
Soybean stocks came in at levels expected by the trade, with old-crop stocks seen as tight and new-crop stocks estimated to be adequate, considering the recent drops in Argentinean production due to drought.
World wheat production is estimated to be down and end stocks are predicted to be up, on the premise that high prices reduced demand and stocks are building. Weather delays are helping to keep wheat markets firm following the other grain markets. Once seeding is complete wheat will be under pressure to get to levels that will encourage exports to try to reduce the estimated buildup of stocks.
Canola followed beans higher and a lower Canadian dollar also helped to boost canola. The lack of willing sellers, as farmers focus on seeding, also supported the futures today.
Aggressive nearby basis levels continue to be offered as companies look for deliveries to fill cars bound for export.
The Dow Jones closed up 50 points today, while the U.S. dollar finished down a third of a cent. The Canadian dollar was down 0.05 cents today to close at US86.41 cents.
Crude oil finished up 35 cents, closing at US$58.85 a barrel for the day.
Corn finished up six to eight cents a bushel today, beans finished up two to down three cents and wheat finished up two to eight cents.
Canola is up $1-$4 per tonne for the day and barley is down 30 cents per tonne, closing at $142.
As seeding progresses the weather market influence will diminish and futures will readjust according to supply and demand. Ensure your pricing strategy is in place sooner than later, especially now when you are busy in the fields and have other things on your mind.
That’s all for today. — Brian
— Brian Wittal has spent over 27 years in the grain industry, including as an elevator manager and producer services representative for Alberta Wheat Pool, a regional sales manager for AgPro Grain and farm business representative for the Canadian Wheat Board, where he helped design some of the new pricing programs. He also operates his own company providing marketing and risk management advice for Prairie grain producers. Brian’s daily commentaries focus on how domestic and world market conditions affect you directly as grain producers.
