Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: Oat futures hit a new contract high as the nearby December contract rallied 25 cents per bushel (daily limit) to settle at US$6.23 per bushel. Cash prices on the Prairies have moved to the C$7.00 per bushel level in eastern Saskatchewan and 7.75 per bushel in southern Manitoba, which is also at record levels. There is no question that your daily porridge ration will be more expensive this winter!

The Bad: The wheat markets were mixed today although the spring wheat contract managed to settle at a contract high of US$9.42 per bushel. The bad news is that the winter wheat contracts are under pressure as rains move through the midwest today. The Southern Plains is expecting rains in the upcoming week, which also should improve conditions for the HRW crop. The rains managed to offset the bullish demand picture, which continues to show strong interest in wheat from European and Back Sea exporters. The reason for the bearishness in U.S. winter wheat is that spring wheat sales were the largest of all the wheat classes at 107,124 tonnes of the total sales of  333,200 tonnes.

The Ugly: The canola markets were higher today with November futures closing the day at a record close of C$927.30 per tonne. The fly in the ointment is the pace of canola seed exports this year. We all know that exports need to be cut severely this year due to the drought, but the canola export pace to week nine is down 1.88 million tonnes to 715,300 tonnes so far this crop year. Ironically, this was the best week for canola exports this year with a total of 250,400 tonnes exported for the week ending on October 3rd. There are significant stocks positioned in Prince Rupert and Vancouver with 228,800 tonnes already in store.