Glacier FarmMedia COVID-19 & the Farm

Experts

 

The Good, Bad & Ugly

The Good, Bad & Ugly

The Good: U.S. spring wheat net  export sales dropped to 63,053 tonnes last week, but that remains close to the pace needed to hit the current projection from USDA. Total commitments of spring wheat are obviously lower than previous years, but the sales last week boosted the total to 4.24 million tonnes.  This is the lowest total commitments of spring wheat in week 30 of the crop year since the 2009-10 crop year. Spring wheat sales need to average just under 61,000 tonnes per week to meet the 205 million bushel export estimate by USDA. The export numbers from USDA were not the reason that spring wheat futures dropped 17 to 18 cents per bushel today.

The Bad: The canola futures market pulled back today, with the nearby March contract closing at 1,018.90 per tonne. The move today was not enough to change any of the technical momentum that has been gained since the recent rally started in the middle of December. Canola prices remain close to the contract high and was positive for most of the trading session. Tomorrow will likely see even lower trade volumes which will increase the volatility in the canola contract. Better to check back in next week, when normal trading resumes.

The Ugly: The drought in the western U.S. wheat growing areas continued to worsen this past week, with most of western Kansas Colorado and the Texas and Oklahoma panhandles in moderate to extreme drought. Obviously the wheat markets aren’t too concerned about the dryness, but most of the crop has no snow cover and a cold outbreak in on the way during the weekend. Of course the winter wheat crop in the Southern Plains has nine lives and it hasn’t even used one yet this crop year!