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Spot mustard prices hit fresh highs on reduced acreage


Written By: Eric Anderson, Sep 30, 2015

CNS Canada — Producers who opted against selling mustard earlier in the season are now relishing the spot market, which is reaching fresh highs not seen since 2008 against contract prices.

Delivered elevator prices are between 45 to 46 cents per pound for yellow mustard, 31 to 33 for brown, and 34 to 36 for oriental, according to Prairie Ag Hotwire.

Those prices are the highest they’ve been against contract prices in seven years, said Walter Dyck of Olds Foods Products.

“I think the market is moving now because it anticipates a small crop,” he said. “I think that caught a lot of people by surprise.”

This year’s production is estimated at 109,400 tonnes, compared with 198,000 in 2014, according to Statistics Canada.

Farmers only have limited amount of land they can put into oilseeds, so this may have just been one of those years where it was tricky for producers to work mustard into their rotation, Dyck said.

There was also a shortage of certified planting seed in Canada this year.

Despite minor complications, the mustard harvest has been progressing well in Saskatchewan and Alberta.

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Posted in Commodity prices | Tagged with mustard mustard prices crop report | More articles by Eric Anderson

Russian Bakers Want Change to Wheat Duty That Tries to Help Them


Written By: Eric Anderson, Aug 13, 2015

Bloomberg is reporting that . . . .

Russia should change a levy on wheat exports that led to a slump in shipments last month, according to the local bakers and pig farmers the policy is trying to help.

Sales abroad by Russia, the third-largest wheat exporter, fell 53 percent in July from a year earlier to the lowest level for that month since 2009, according to figures from grain carrier ZAO Rusagrotrans and the government. The drop followed the enforcement of the export duty to shield bakers and farmers of livestock from rising prices amid double-digit food inflation.

“We support regulating exports,” said Valery Cheshinsky, president of the Russian Union of Bread Baking Industry. “But we don’t wish harm to anyone.”

 

The bakers’ lobby, whose members produce more than half of Russia’s bread, is joining the National Pig Farmers’ Union in supporting calls for changes to the levy, with Prime Minister Dmitry Medvedev seeking proposals on the issue by Sept. 10. Concerns include the possibility that Russian wheat farmers will sow less of the grain if exports continue to decline.

The tax should be a certain percentage of the customs value of shipments or a fixed amount, replacing the current more complex formula, according to Cheshinsky. That would make the situation more predictable for exporters and allow flour millers to build reserves at the start of each season when prices are typically lower, he said.

Full story is at http://www.bloomberg.com/news/articles/2015-08-13/russian-bakers-want-change-to-wheat-duty-that-tries-to-help-them

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Posted in Commodity prices | Tagged with wheat Russia trade | More articles by Eric Anderson

Prairie cash wheat bids edge higher


Written By: Eric Anderson, Aug 11, 2015

CNS is reporting that . . . .

Canada Western Red Spring (CWRS) wheat cash bids across Western Canada were stronger during the week ended Friday, as basis levels and U.S. futures markets also showed some improvement.

Average CWRS wheat prices were up by C$7-$10 per tonne over the week, with bids ranging from about $212 per tonne in the Peace region of Alberta, to as high as $225 per tonne in Manitoba, according to price quotes from a cross-section of delivery points across Western Canada.

Quoted basis levels varied from location to location, but generally improved, to average about $24 above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.

When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$161 to $171 per tonne. That would put the currency-adjusted basis levels at about US$23-$33 below the futures.

Looking at it the other way around, if Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from C$30 to C$43 below the futures.

 Full story and details are at http://www.agcanada.com/daily/prairie-cash-wheat-bids-edge-higher

 

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Posted in Commodity prices | Tagged with wheat prices prairie wheat | More articles by Eric Anderson

June grain prices - SK Lentils up 53%


Written By: Eric Anderson, Aug 06, 2015

Statistics Canada released the June grain prices today.

In Manitoba, Canola and Wheat prices were up slightly from last June, with Dry peas down slightly.

In Saskatchewan, Lentil prices were up 53% from last June, with all of the other crops up slightly.

 

In Alberta, Canola and Durum were up dramatically, with the remainder up slightly.

 

When all months are considered on the long-term trend, all three provinces have resumed an upward trend on all crops.

 

 

Source:  http://www.statcan.gc.ca/daily-quotidien/150806/dq150806a-eng.htm?cmp=mstatcan

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Posted in Commodity prices | Tagged with wheat canola durum lentils prices Alberta Saskatchewan Manitoba | More articles by Eric Anderson

U.S. grains - Prices advance on crop, weather worries


Written By: Eric Anderson, Aug 05, 2015

Reuters is reporting that  . . .

U.S. grain and soybean futures jumped on Wednesday as concerns about poor weather hurting autumn harvests fuelled a recovery from recent losses in the markets.

The U.S. Department of Agriculture, in a crop report on Aug. 12, may trim its U.S. soybean acreage and ending stocks estimates because of excessive rains that disrupted spring plantings, traders said.

Traders were also keeping an eye on weather forecasts amid worries that some growing areas may turn too dry during an important period for soybean development this month.

“Additional risk premium is being added to corn, wheat and soybean futures ahead of critical U.S. supply updates from the USDA,” Chicago-based agricultural consultancy AgResource Co. said in a note.

. . . .

In the wheat market, Egypt, one of the world’s largest wheat importers, said it bought 120,000 tonnes of Russian wheat in a tender.

U.S. wheat is seen as too expensive to be competitive on the export market.

On Thursday, traders will digest weekly U.S. grain export sales data from the USDA.

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Posted in Commodity prices | Tagged with canola wheat barley oats crop prices saskatchewan | More articles by Eric Anderson

Russian PM orders proposals on wheat export duty


Written By: Eric Anderson, Aug 04, 2015

Reuters is reporting that . . . .

Russian Prime Minister Dmitry Medvedev has ordered the preparation of proposals on a grain export duty, following a meeting on the Russian agriculture sector on Monday, according to the government's website.

Medvedev, whose comments were published by the website, did not make any specific orders on the duty. The website also quoted him as saying Russia plans to have a grain crop of around 100 million tonnes this year.

 

Russia introduced a wheat export tax in July, intended to stop exports surging if the rouble drops steeply.

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Posted in Commodity prices | Tagged with wheat Russia trade | More articles by Eric Anderson

Canola, wheat, barley, and oats prices up!


Written By: Eric Anderson, Jul 20, 2015

 

From http://www.agriculture.gov.sk.ca/MarketTrends

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Posted in Commodity prices | Tagged with canola wheat barley oats crop prices saskatchewan | More articles by Eric Anderson

Early Sask. lentil, pea harvests likely to support prices


Written By: Eric Anderson, Jul 17, 2015

CNS is reporting that . . . .

Saskatchewan’s dryness could likely mean an earlier harvest and smaller yield for pea and lentil crops this year, according to a regional crop specialist.

That means new-crop prices will be supported, said Chuck Penner, president at LeftField Commodity Research.

Old crops are disappearing, he said, and the market will become active as soon as farmers start harvesting. “Buyers are ready to take this crop as soon as it’s off the combine.”

Pea and lentil prices will dip slightly right after harvest, he said, especially if farmers sell heavily, but he expects the market to recover after that.

Shannon Friesen, a regional crop specialist with Saskatchewan’s Agriculture Knowledge Centre in Moose Jaw, said lentil crops in the province’s west and pea crops in the province’s south are much more advanced than they should be.

There are indications desiccation will begin in August, which means farmers will start harvesting soon after, she said.

Full story at http://www.agcanada.com/daily/early-sask-lentil-pea-harvests-likely-to-support-prices

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Posted in Commodity prices | Tagged with lentils Saskatchewan crop prices | More articles by Eric Anderson

Prairie durum prices rising as farmers aren't selling


Written By: Eric Anderson, Jul 17, 2015

CNS is reporting that  . . .

Prices for durum in the Prairie cash market have been on the rise recently, but there are very few actual transactions being made as farmers aren’t selling.

“The companies know that, generally speaking, farmers aren’t in the mood to sell, so they’re probably trying to maybe encourage deliveries of last year’s durum, so trying to get that out of the bins, which might be hard,” said Neil Townsend, director of market research services with CWB in Winnipeg.

Cash prices for durum in Saskatchewan and Alberta gained between $20 and $37 per tonne during the week ended July 10, to range from $310 to $343 per tonne, according to data collected from a number of delivery points in Western Canada.

Some buyers are also looking to lock in some new-crop contracts for high-quality durum, due to poor-quality crops out of Europe and Canada last year.

Farmers, however, are still waiting for the market to move higher as drought continues to plague many growing regions in Alberta and Saskatchewan.

Full story at http://www.agcanada.com/daily/prairie-durum-prices-rising-as-farmers-arent-selling

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Posted in Commodity prices | Tagged with durum wheat crop prices | More articles by Eric Anderson

Rye prices seen high, but stable


Written By: Eric Anderson, Jul 17, 2015

CNS is reporting that  . . .

Rye crops have been reacting to Saskatchewan’s heat and dryness by developing faster than they would normally be — but healthy crops elsewhere appear to be helping to keep global prices stable, at least for the time being.

U.S. crops may stop rye prices from moving too turbulently, at least until Canada’s yield becomes more clear, said Roger Kissick, grain merchant at Linear Grain.

“The U.S. also has a good crop of their own. This early in the season, those types of concerns won’t show up until later on,” he said.

According to Kissick, considering the current values of other crops, rye prices are high — and the market will likely not be very active over coming months, until about Christmas.

Right now, he said, average rye prices are between $5.50 and $6.50 a bushel.

Full story at http://www.agcanada.com/daily/rye-prices-seen-high-but-stable

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Posted in Commodity prices | Tagged with rye crop prices Saskatchewan crop conditions | More articles by Eric Anderson

What's driving corn and wheat prices?


Written By: Eric Anderson, Jul 13, 2015

Bloomberg has a video discussion in which Bloomberg’s Alan Bjerga examines corn and wheat futures with Bloomberg’s Scarlet Fu on “Bloomberg Markets.

See http://www.bloomberg.com/news/videos/2015-07-10/what-s-driving-corn-and-wheat-prices-

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Posted in Commodity prices | More articles by Eric Anderson

Canola prices likely to stay firm in longer term


Written By: Eric Anderson, Jul 09, 2015

CNS Canada is reporting that "In the longer term, canola is likely to stay firm . . . ."  Recent rains have helped some regions of AB and SK, but unless they continue and expand, things will definately not drive prices lower..

Full story at http://www.agcanada.com/daily/ice-weekly-outlook-weather-still-key-for-canola

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Posted in Commodity prices | More articles by Eric Anderson

Mystery supplies keeping canary seed from rallying


Written By: Eric Anderson, Jul 08, 2015

CNS is reporting that "Canary seed grown in Saskatchewan accounts for about 70 to 80 per cent of the international trade in the grain used mostly as bird feed."

They go on to say that, ". . . dry conditions in major canary seed-growing regions of the province have cut into yield prospects . . . ."

This would usually rocket prices skyward, but they have not - but they've only edged a little.

The world supply seems to be being filled from a mystery source?

Hmm.

Full story is at http://www.agcanada.com/daily/mystery-stocks-keeping-canary-seed-from-rallying

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Posted in Commodity prices | More articles by Eric Anderson

Prairie wheat bids mostly higher with U.S. futures


Written By: Eric Anderson, Jul 07, 2015

CNS Canada is reporting that "Cash bids for western Canadian wheat were mostly higher during the week ended Friday, with gains in U.S. futures providing some support."  Bids were $2 - $10 per tonne higher for Canada Western Red Spring. 

The story is lengthy anf also includes the chart below.  See http://www.agcanada.com/daily/prairie-wheat-bids-mostly-higher-with-u-s-futures

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Posted in Commodity prices | More articles by Eric Anderson

May cattle prices up 35.9% in 2015 vs 2014


Written By: Eric Anderson, Jul 06, 2015

Statistics Canada released their May prices report today.  In it, they mention "The May Alberta slaughter cattle price was $192.80 per hundredweight, up 0.7% from April and up 35.9% from May 2014 when the price was $141.87."

Lentil prices also up.

 

The full story is at :  http://www.statcan.gc.ca/daily-quotidien/150706/dq150706c-eng.htm?cmp=mstatcan

 

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Posted in Commodity prices | More articles by Eric Anderson