Good Day, Eh!
We have had a very wild bunch of weather in the last week. Ten days ago everyone I talked to said we could use an inch of rain. Now it seems everyone has got their inch and some areas in Western MB has had way more than they need. Getting 8 to 10 inches with locally heavier amounts. Not the way anyone wants it. It seems that most areas have what they need for rain with some in AB becoming a bit too wet as well. Generally, everyone feels the crops are looking pretty good at this time. Considering some areas had harvest to do before seeding could be completed this just shows how much can get done in a crunch.
If you could take a minute and let me know how crops look in your area and how much rain you had it would be appreciated.
We had an interesting month in feed grains during June.
At the beginning of the month feed wheat and barley where both in good demand with $185 to $190 picked up for barley and $200 to $210 picked up for feed wheat. These prices are based on Western MB. Since then we have seen both barley and wheat drop $10/MT and then at the end of June both commodities have moved back to the higher levels. We have seen delivered Lethbridge bid follow much the same path during the month of June.
We have seen oats drift lower as well. It seems that the milling/ feed export demand has been covered and as we get close to new crop the pressure is off the oat market. That being said if you still have oats in the bin we can get you better prices for immediate movement than what new crop bids are.
Corn cash prices just keep creeping lower even though in the last few days of June we saw the fall futures run up quite a bit. The biggest problem with a lot of the corn that is still in bins in MB is the bushel weight. 48 to 53 lb. We are seeing buyers trying to buy corn at $170 to $175 in the Red River valley. Not many producers will open the doors for that but in time it will likely happen.
We have seen an interesting change in the rye market in the last 3 months. $6.00 fob farm in January down to $4.65 fob farm Sept/Oct in MB. After talking to buyers in US it appears that all the wet acres in the Minnesota and the Dakotas was seeded to rye as a cover crop under one of their many programs (this was why open pollinated rye was worth $7.50 in southern MB last fall). When it was time to seed corn, rye looked like a better bet so now Canadian rye has to compete with US rye and we all know which the US mills will buy. We need to hope they have quality issues and we don’t if the rye market is going to bounce back.
Every month I like to write/rant about something we see in the grain industry that I feel might benefit reads. My pet peeve this month is the companies in the pulse/special crops industry that feel they need to charge a handling/elevation fee. Seems that it varies from 1% to $3.50/MT to a top of $8.50/MT. Make sure you ask these questions before you sign or even verbally agree to a sale. ($8.50/ MT is $0.23/bushel on peas) that makes the buyers great bid of $7.50 picked up a not so great price of $7.27. Just something to keep in mind!
We have 2 buyers still actively looking for new crop yellow peas. Both with Act of God in their contracts. And yes we will check on the handling fees for you. They will likely lower their bids as we approach harvest if they don’t get coverage before then. One requires certified seed one doesn’t. Southern SK and MB work best for either of these buyers. I think when Stats Can comes out with their numbers we will see yellow pea acres up.
We are still finding good bids for heated, green or spring thrashed canola. Don’t dump it in the slough we can help.
Bids for barley in all 3 provinces have remained strong. 50 cents a bushel better than new crop. This could be because some malt contracts have been pushed back from this year and new crop contracts will likely suffer the same fate.
As always give us a call if you need some assistance in checking prices. We do a lot of tire kicking for our producers and that is part of out service. If you have something to sell we will help you come up with a reasonable price to offer it at. It seems that offers are getting better prices than just throwing it at the wall and seeing if it sticks.
Until next time. Stay safe in your farming and your fun this summer.
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
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