Weather threats to U.S. crops, a U.S. Department of Agriculture report that forecast a smaller than expected American soybean crop and general market optimism roiled grain markets last week.
This issue’s Markets section, which begins on page 6, reports that American winter wheat farmers will be checking fields this week for damage after sharp frosts hit over night April 6 and 7 that sparked reminders of the devastating 2007 spring freeze.
As well, U.S. farmers will continue to weigh their seeding plans. The USDA said farmers planned to reduce total seeded area for all crops by 7.8 million acres, likely because of poor profitability because grain prices are weaker than 2008, but input costs are still a burden.
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The yield estimates for wheat and soybeans were neutral to bullish, but these were largely a sideshow when compared with corn.
Farmers on both sides of the border are also deciding what to do with what remains of the 2008 crop. Last week’s rally that pushed canola cash prices to near $10 per bushel in Alberta is a strong enticement to sell.
And the specter of a huge dry pea carryout has advisers suggesting that growers sell old crop if bids look reasonable to avoid what could be lower prices in the new crop year.
The Canadian Wheat Board encourages wheat deliveries because of a strong shipping program planned for spring and summer. One of the buyers is Saudi Arabia. The oil-rich, but water-poor kingdom has leapt into the front ranks of Canadian wheat customers this year.
