The Good, The Bad and The Ugly
(That's markets for ya!)
The New Year is just seven days old and there have already been eye-catching grain market movements, both bullish and bearish. Did you see? We do all the digital dirty work of aggregating and sorting data and price points. This year, instead of buying a gym membership, and then cancelling it on February 1st, make a real resolution: buy the Farmbucks app and let finding the best price every time be the resolution that sticks!
I'll just cut to the chase. If you aren’t following grain prices every day, you should be. It's wild how much these markets move and how quickly it changes your bottom line. If you don’t believe me, just look at wheat markets. I can already hear you saying, “it’s such a pain to sort through all the texts, emails, and websites.” And while I know you’d rather spend time doing other things (such as shoveling snow), at the very least spend a quick five minutes each day to check your local bids on Farmbucks. It's quick and easy. Be confident you are making the right decision when deciding to hold or sell grain.
Weekly Market Recap:
Wheat dives lower and is oversold. Soybeans and canola stand strong.
Extreme cold conditions have really limited grain/oilseed movement.
USDA reports out next Wednesday.
Deals of the week: $24.68/bu old crop canola
Canola: Canola futures continue to claw higher and find support from soybeans and veg oil markets. Local crushers are offering good bids to secure more old-crop supply to get them to new-crop. Did I say, canola prices are looking good?! Be sure to check them out. Let it be known this market is flying high - don't miss these prices.
Soybeans are also on the rise and continue to rally even higher on dry weather in South America. Soybeans in southern Brazil and Argentina are burning up. As with canola, many good prices can be found. Ongoing weather in South America will be watched closely for market direction.
Wheat: These are the times I like to look away. Or peak and watch with one eye open. Wheat markets just can't catch a break right now, especially spring wheat. They've all lost a lot of ground the past two weeks and are in oversold territory. There is just no positive news right now to help them out. It is due for some sort of bounceback. Today wheat markets seem to have finally stopped some of the bleeding.
Of note, Kansas is holding up just a bit better than Minneapolis futures as the U.S. winter wheat crop is experiencing extremely dry conditions. Apparently, this is the driest it's been in the past 40 years.
We continue to see some decent durum specials pop up here and there for nearby delivery.
Barley: It's interesting, despite wheat continually tanking, barley demand seems to have picked up this week and so have some bids for both old- and new-crop. Not sure how barley will fair though if wheat and feed wheat values continue to drop. The strength in corn is helping hold up barley values. Please take note of current bids.
On another note, it is widely expected that we will plant lower barley acres in Canada next year (but that’s hardly a surprise as we planted massive barley acres this past year—the most since 2009).
Corn futures are holding strong. Some of its strength is attributed by the dryness in South America.
Peas: Steady to slightly stronger.
Oats: Quiet and steady.
Around the farm: Let's get out of Dodge! It was just too darn cold at home to do anything! More snow came rolling in and so we did the usual—plow and shovel snow. Right after that, we bolted and headed for a quick last-minute trip with the kids to Fairmont, B.C. I found a hell of a deal online and Santa bought snowboards, so my hubby and I decided to take our three kids to the mountains to teach them how to shred! Nothing like diving right in! It's our first time staying at the Fairmont Hot Springs, and I must say it's been the absolute perfect little getaway. Skiing Fairmont provides the best learning atmosphere for all; it's small, affordable and not busy at all. Oh, and it’s only -1°C here today! Back to 'reality' tomorrow.
Until then, cheers everyone!