I see you.
(High Grain Prices!)
It was so good to see some of you at last week's Agri-Trade show! It was a great chance to catch up and hear what you all think and need when it comes to farming. It was also an excellent opportunity for us to explain that Farmbucks is a grain price discovery tool proven to boost your farm’s bottom line! You'll see why when reading below in our markets report. By comparing the majority of bids side by side, we are able to pick out your heavy hitters/top buyers instantly and help you take advantage of hidden opportunities!
No matter where you are or what you are doing, markets are moving and grain is traded. Neither care if you are away on holidays or attending events like last week's Agri-Trade. Farmbucks is thrilled to help you up your game, inform your decision-making process, and, most importantly, afford you more time to get back to the things you love.
Weekly Market Recap:
Last Tuesday's USDA report proved to be bullish! Markets rally. New highs were made in wheat and canola markets.
Deals of the week:
$23.50+/bu canola and $13.00+/bu CWRS
Canola: Rallies are even higher after USDA's report. It is quite the bull market we are in (check out some charts!) with no reversal signals just yet. It rode the wave higher this week along with soybeans and soy oil. As we know it, our supplies are super tight and demand for biofuels is strong.
***One item that caught our eye this week was the strong demand coming from Richardson Pioneer locations for canola deliveries from now until February. Make sure you take a look and compare bids on our app. RP was outbidding our big crush plants out west.
Soybeans, although not a strong market, last week's USDA report was friendly. Soybean futures have turned higher after the report. It trimmed the expected yield in the U.S. ever so slightly and revised world production to also be slightly lower than anticipated (though still record high). South American weather will remain paramount in the coming months to see where prices go next. They are looking to grow a massive size crop but there is talk that drier weather patterns may be up ahead with La Niña.
Wheat: New highs for Chicago wheat, Kansas wheat and new crop Minn wheat. The USDA's report fuels wheat markets to move up with spec money jumping back in. U.S. ending stocks are still the lowest since 2007/08 and the report also lowered global wheat ending stocks. In other words, we are not building up our reserves. La Niña is of concern as it can bring drier weather across the U.S. Southern Plains where a lot of winter wheat is grown. We all know which way prices will go if this comes to pass, but it is never certain. To top it all off, there are concerns of wheat export disruption in the Black Sea region. The U.S. has increased their presence there as tension runs high between Russia and Ukraine.
Last week, we found many $13/bu bids for CWRS and confirmed $12.50/bu FOB bids for CPSR in central Alberta.
Barley: Barley bids remain strong as corn is strong. Lots of corn is moving in to fill our feed demand. I repeat from the week prior, barley is in short supply and hard to buy. That means just one thing: high cash bids.
Corn futures are holding strong. The USDA slightly increased its projected yield which increased production, but it also raised how much was used for ethanol production, thus resulting in lower ending stocks than previously projected. Corn production in the world is still record high, pending any blips to the South American crop.
Peas: Some strength in yellow bids seen. Nothing earth-shattering but better.
Oats: Taking a breather this week. Futures struggled this week although they are still bouncing around at the top end of their range. Cash bids remain high and are attractive. We've had strong exports to the U.S. which are not sustainable every month due to our terribly small crop. More rationing is required.
Around the farm: I was away and spent the week at Agri-Trade in Red Deer, AB. Shout out to all those of you who came to say hi! It truly made my day when farmers stopped by the booth to tell me that they were able to “make a sh!t ton more money” using my service!!
Even during such a busy week, I was able to use my own app to identify which company and location would most likely be able to meet my target price on canola. I called them, set a target and wouldn't you know it, Friday morning it triggered! My plan (as I'm sure many of yours, too) is to sell in small increments and hopefully keep averaging up!
What a great week and I look forward to seeing what markets do this week! Stay tuned! Stay sharp!