The Good: Barley exports were modest during the past week, with only 67,400 tonnes shipped during the week. This puts total bulk barley exports only 86,200 tonnes lower than last year’s total exports. More exports will be registered over the next week or two as both Prince Rupert and Vancouver have barley vessels waiting for cargo. Total barley stocks in the in the primary elevator system were just under 300,000 tonnes on February 7th. Most of these stocks will be shipped to export terminals in the coming weeks/months. These shipments will continue to lower the barley stocks in Western Canada to pipeline levels by the summer. This will help support barley prices during the coming months!
The Bad: Diesel prices continue to rise as the crude oil rally gained momentum this week. Crude oil is being driven by a reduction in U.S. stocks and optimism that demand will recover as vaccine rollout begins to gain momentum. The market is due for a correction, but momentum is certainly on the side of the bulls at the moment. The rise in crude oil prices will ensure that diesel prices will continue to increase over the next few weeks. Diesel stocks in the U.S. stand at 161 million barrels which is still 10.4 million barrels above the five year average. Seasonally, were are entering the high demand period for diesel which will pull stocks even lower. MarketsFarm hopes that your tanks are full for the spring season.
The Ugly: The cold temperatures this morning were only a beginning of the cold period for the Southern Plains. The coldest temperatures will be arrive on Monday with the lowest temperatures expected in western Nebraska. The western areas of Kansas are expected to drop to the -15F to -20F range. Snow is expected in the region over the next few days, but these temperatures will cause winterkill in unprotected wheat.