After trading at a significant discount to soybeans last year, contrasting production scenarios have resulted in canola gaining value relative to soybeans over the last few months. “Historically canola futures have traded $80, sometimes even $100 higher than soybeans. Last year was exactly the opposite,” explains Chuck Penner of LeftField Commodity Research. “What we’re starting… Read More
Category: Grain Markets
The results are in. Wet weather early in the growing season and again during harvest took a toll on the quality of this year’s crop in Western Canada. Mildew is the most common downgrading factor in spring wheat this year, reports Daryl Beswitherick, Manager of Quality Assurance and Reinspection with the Canadian Grain Commission. “Last year,… Read More
The organization representing major grain elevator companies in Western Canada says it believes both Canadian National Railway (CN) and Canadian Pacific Railway (CP) have failed to meet weekly grain shipping requirements for extended periods of time since the weekly minimum thresholds were implemented back in March. The federal agriculture minister confirmed last week that the… Read More
Grain prices are in that seasonal rut thanks to #harvest14 selling pressure and favourable planting conditions as South America starts its seeding season. On the speculation side, hedge funds are starting to increase their optimism that grain and oilseed prices will begin to rise. That being said, in the last four decades, an ounce of… Read More
Heading past the halfway point of September, the pace of the North American harvest picked up with excellent weather allowing crops to dry out from late growing-season rains. That being said, the quality of the crop coming off is quite variable with reports of fields next to each other swaying a few grades one way… Read More
With no major production challenges anywhere in the world, grain and oilseed prices have fallen to levels we haven’t seen since 2010. So how low can they go? That’s the question Frayne Olson, crops economist and marketing specialist at North Dakota State University, tries to answer in the interview below. Looking at historical charts for… Read More
Grains this week fell significantly as harvest pressure starts to hit full tilt in the North American markets. Most of the northern half of North America and parts of Australia are experiencing some cold weather, which has the bulls frothing to see prices move higher, but the trend continues to head lower as bears are… Read More
Snow and freezing temperatures arrived earlier than welcomed in parts of Western Canada this week. We also saw a bearish market report from the USDA and some new developments surrounding the privatization of the Canadian Wheat Board. It was also a week on the road for the RealAg team, as Shaun, Lyndsey and Bern attended… Read More
Keeping with the bearish trend in the grain markets, the USDA reported higher than expected corn and soybean yields and production in its monthly supply/demand report released on Thursday morning. The average U.S. corn yield was pegged at a record 171.7 bushels per acre, with total production of 14.4 billion bushels. For soybeans, the average yield for… Read More
In a move that might be seen as a good ideological fit, Farmers of North America has launched a campaign asking its members whether they would be willing to invest in purchasing a majority interest in the former Canadian Wheat Board (now known as CWB.) The farmer alliance says a producer-owned grain handling company would… Read More
While the majority of the Western Canadian crop is no longer vulnerable to frost, there are still areas where wheat and canola, as well as longer-season soybeans and corn, are not ready for the freezing temperatures that are expected over the next few nights. According to Bruce Burnett, weather and crop specialist with CWB, between five and 10 percent… Read More
Coming off the long weekend in North America, the grains market started the month of September trying to hold onto higher levels on varying weather affecting crop development and the situation continuing to unfold in eastern Europe. While reports vary on a proposed ceasefire between the Ukrainian army and pro-Russian separatists, the latest rumour to… Read More
ICE Futures Canada has made some small changes to its canola, durum, milling wheat and barley contracts following the challenges with rail service over the last year. A notice sent to market participants on Thursday outlined several amendments regarding shipping that apply in instances where there could be physical delivery against a contract. President and Chief Operating… Read More
There’s less canola and wheat left from last year’s bumper crop than traders and analysts thought, according to the Statistics Canada stocks report released on Friday morning. Wheat stocks as of July 31st were pegged at 9.8 million metric tonnes, up 94 percent from the same time last year, but generally below expectations. Canola supplies… Read More
By Larry Martin As this is written, December corn futures have traded in a range between US $3.81 and $3.58 for six weeks, since mid-July. This range came after a precipitous drop from the $5.00 area in April and May. Everyone is trying to guess where the market’s going from here. Of course no one… Read More