I hope everyone received enough rain last weekend to keep things going for a while. We have had reports of 3 inches or better in some areas of central SK and as low as 0.5 inches here in Brandon. It really looks like a year when the weather is going to be #1 topic in all conversations. It looks like AB and SK producers might be able to have those chats face to face in the near future. I am afraid that here in MB we are not going to have that privilege any time soon.
Since I sent my last newsletter in early May it has been a wild ride on the grain markets. We have seen it all. Big buying interest from export markets driving prices in several commodities, then the buying dries up and prices slide back. Then we get a good US crop report for wheat, prices head lower still. Now at the beginning of June the weather is starting to play into possible cropping issues.
I would like to use the period April 30 to June 1st to illustrate how feed prices are influenced by the futures prices but not directly tied to them. I will use Minneapolis HRS wheat futures and Eastern SK/Western MB feed prices as comparison.
- April 30th Minneapolis HRS wheat at $7.38 - We traded $295/MT - $8.02/bus picked up Elkhorn MB
- May 10th Minneapolis was $7.89 (the high to date) - we traded $325/MT - $8.84/bus FOB Reston MB - topped at $328/MT on 11th FOB Elkhorn.
- May 20th Minneapolis was $6.98 - We traded $317/MT – $8.63/bus FOB
- June 1st Minneapolis is $7.71 at 11.43 AM - We have bids of $295/MT - $8.02/bus FOB
This shows how the feed markets will follow the futures up but usually will lag. Going down the feed prices usually race the futures to the bottom. Makes it hard to pick a time to pull the trigger.
With prices softening we do still have good demand for barley. Bids have held in the East and are a bit lower out West. Feedlots have some good coverage. Hog barns are buying hand to mouth as no one wants to own $325-$335/MT feed grain if new crop is coming. Feed wheat is 70 cents lower but that does not mean it won’t bounce back.
Still good interest in flax. We traded $25/bus last week. But not as many buyers in the market. Heated canola is still holding values with good demand and moves within 2 weeks of the trade being finalized.
Oats have held their own but didn’t follow wheat up. A lot of the oat mills are saying they are covered until new crop so not sure if we will see a rally there. Still trading better than $4.00/ bus in MB and Eastern SK.
We have also been getting decent bids on NEW crop barley. We have traded $5.50 picked up off combine in Western MB.
We have good demand for:
- Feed Wheat and Barley
- Heated canola
- Pulses of all kinds
Have buyers in Southern Saskatchewan looking for NEW crop Small Green Lentils:
- 15 BPA with AoG on #2s or better - Call for a price picked up in the yard
Let us know if there is anything we can help you with. We are always willing to kick some tires on your behalf. Until next month. May it rain when it is needed and may the wind not blow during spraying season.
Marketer - Brandon, MB
204-729-1354 - Office
204-761-8320 - Cell
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