Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: Canola powered higher today as buyers scramble to get covered in both nearby and deferred positions. The move this week has pushed the nearby (March 2021) contract to new all time highs. Cash prices are also hitting all time highs in the April-May-June period across the Prairies. The old saying goes “what goes up, must come down”, but canola for now is trading at new highs.

 

The Bad: The Tunisian tender saw prices for durum and barley drop slightly from the results of last month. Durum CIF prices averaged US$385.65 which is down by US$1.80 from last months tender. The barley tender showed that prices dropped US$2.30 per tonne to US$285.28 per tonne. The drop in prices are minimal, which is good news, but it does indicate that prices are beginning to stabilize after moving higher since November.

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The Ugly: Despite the fact that crude oil futures have dropped during the past two trading sessions, the Canadian dollar continues to move higher. The Canadian dollar is a favourite currency for the back to normal economy/inflation trade. The bad news is that does hurt the Canadian cash grain, pulse and oilseed values. The good news is that prices are close to all time highs so the impact is minor compared with the increased commodity price. If you are looking for a silver lining, the costs of goods priced in U.S. dollars like fertilizer and machinery is lowered by the stronger loonie.