We have had a wild ride in the markets this year haven’t we. Up $15 on day down $16 the next. This is making it harder for producers to pick a time to pull the trigger. I think the biggest mistake you can make is to not do something. A good marketing plan does not involve the phrase “Lets wait and see what happens”. That is not a plan, it is rolling the dice with your operations future.
One other comment I have regarding marketing your crops. Make sure you know what you have in your bins. Make sure to get accurate moisture, grade and grams/.5-liter weights. This is especially important when marketing oats. We are still seeing elevators using different conversion factors (Avery, Winchester, or Imperial). That is why we need g/.5l weights. That allows buyers to know what they are buying. And then they know it will work into their end users’ programs.
After those comments I should maybe just stick to grain prices. We have seen feed prices soften a bit from 2 months ago. Most buyers have coverage through April and into May. They know there will be issues with road bans and producers busy in the field. We still are seeing historically strong pricing in all feed grains. From the conversations we are having with producers most of the grain (85%) is already priced and a large % of it has moved. This should mean very little clean out pressure in June and July. Sellers do have to remember that September prices and June prices must meet somewhere. No one knows if it will be by current prices dropping to new crop or new crop moving up. Today with it being dry across a large part of central North America I would guess new crop will move up. Just remember what you pay to get this newsletter when you consider the value of my thoughts. As we all know one major rain event through the Midwest and all bets are off.
We do have good demand for feed grains of all kinds. The better prices are for June/July movement. The prices are off the highs by 5% for both wheat and barley. If you still have some not prices let us know how much and the specs so we can keep you posted on any selling opportunities.
We still have good demand for heated canola, yellow peas, and all feed grains. Green peas just don’t want to recover to December levels. Flax is still strong as well. $22-23/ bushel. We do have good new crop pricing on several commodities as well.
Give us a call if you have any questions or comments. Lets all think rainy thoughts for the next while and get the crop off to a good start. Until next month.
Quality Grain Marketing
John Falk Richie Yaremko
Marketer – Altona MB Marketer – Yorkton SK
Victor Dorma Reed McDonald
Marketer - Airdrie AB Owner/Marketer – Calgary AB.
Wes Schneider Howard Warren
Marketer - Vulcan AB Marketer – Champion AB
Robert Rusu Andrew Hall
Marketer - Moose Jaw SK Marketer – Lethbridge AB