(It’s a down week.)
Summer is almost here! Time is everything we have ... and don’t. Make the most of your time and download our app. If you did you’d already know that the markets took more than a few hits this week as it tumbled down. You may have also noticed the website has a new tab for you to view futures and charts. Soon, it will be available through the Farmbucks app! We are still working on even more features to keep you in the know!
Weekly Market Recap:
As you are probably aware, it wasn't a great week for markets as they fell lower. Speculative money exited markets as they await a meeting set for June 8 (next Wednesday) to see if Russia and Turkey will come to an agreement for a safe export corridor for Ukraine's grain. Weather premiums left the markets, wet areas are expected to get drier which will allow for planting and dry areas are forecasted to see some rains.
Canola: Barely hanging to support lines. Canola failed to move higher yesterday with soybeans and soy oil markets and apparently no one could explain why. We’re hearing it was due to a lack in trading interest and volume. Canola seems to do its own thing sometimes. Old-crop futures tumbled lower today in particular, losing $33.10/MT with new-crop futures only losing a couple of dollars. The spread between old- and new-crop futures are narrowing. Canola is being supported by higher crude oil prices and increased Chinese demand (as the country opens back up from COVID-19 lockdowns) but that is counteracted by a rising Canadian Dollar. Still, supplies remain tight, and this year's crop is yet to be grown (all eyes on yield).
Wheat: Sinks lower. Wheat came out of the U.S. Memorial Day Weekend sliding lower each day. As mentioned above, a lot of spec money exited as there's hope for Ukraine’s wheat to reach export. There is a lot of doubt that this will actually happen but the 'could' spurred profit-taking. Kansas wheat is seeing a little more pressure than Minneapolis futures as harvest of the U.S. winter wheat crop has begun. There is still plenty of unseeded spring wheat acres in Minnesota and North Dakota from the wet weather. France's soft wheat crop rating declined a little more this week to 67% good/excellent due to hot and dry weather. Egypt booked wheat at prices above the offer, FYI.
Barley: Bids are mixed. I've seen some old crop bids adjust up and down this week, depending on the buyer and location. Even though corn futures have been falling we've seen some new crop barley bids gain $0.25/bu. Corn has been pressured lower as the U.S. planting pace is close to average and the weather is cooperative.
Peas: Mostly unchanged this week.
Oats: Oat bids gained ground with some new crop bids up $0.50/bu. A couple of recommendations were out this week to add to old- and new-crop sales.
Around the farm: Not sure where the week went! We could use some rain any day now ... unfortunately we will have to wait at least another week. We finished cleaning and repairing a lot of equipment this week, sprayed the first pass in our early-seeded RR canola and loaded out some canola to the crushers. Also, I worked hard on Farmbucks changes that I am optimistic to have the app store approve next week! Stay tuned ... lots coming down the pipeline! On another side note, I've been given a quote of about $960/MT urea, stored until spring pick-up. I didn't buy but NOLA values have also been on the decline. I'll keep you posted.
Enjoy the sunshine! Cheers y’all!