Australia’s searing drought is igniting a fire under wheat prices. “It’s extremely critical in Australia,” said Canadian Wheat Board weather and markets analyst Bruce Burnett. “If they don’t get the rains in the next two to three weeks, crop yields are going to drop quite dramatically.” Good rain at seeding time encouraged planting of a […] Read more
Markets — page 921
Markets jittery over Aussie drought
When will wheat peak?
How high can wheat go? That’s not just a question. “That’s the number one question,” said Winnipeg analyst David Drozd of Ag-Chieve. “Where will the top be?” Wheat prices have stunned all but the most bullish of forecasters in the past few weeks, rocketing past the $7 US per bushel price on U.S. commodity exchanges, […] Read more
Farmers chase high prices with seeders – Market Watch
The adage is that real estate is a great investment because they are not making any more land. Land limitation is also an increasingly important aspect of grain markets. Many analysts say today’s record high wheat prices will coax Northern Hemisphere farmers to seed record area to winter wheat this fall, which could extinguish the […] Read more
Consumers, not regulators needed for GM acceptance
MONHEIM, Germany – Even when European regulators finally pave the way for imports of genetically modified crops, it will be years before any measurable consumer demand emerges, says the head of one of the world’s largest biotechnology companies. “I personally do not think GMOs will be accepted in Europe in the next few years,” Friedrich […] Read more
Spreads are nearly risk-free way to market grain – Hedge Row
When is cheap better than free? When what’s cheap contains no surprises and what’s free ends up causing big financial headaches, says Errol Anderson of Pro Market Communications. That’s why he focuses on option strategies for crop sellers and buyers and why he’s promoting call option spreads and put option spreads. A futures contract could […] Read more
Western Producer Livestock Report
Fed cattle steady The fed cattle market was slow to develop last week and most of the business happened midweek, Canfax said. Steers traded from $86.25 to $89 per hundredweight live and $144.50 to $146.30 on the rail with the weekly average 20 cents higher at $87.68. Heifers traded from $86.75 to $87.15 per cwt. […] Read more
Analysts, farmers caught off guard by basis levels
Some farmers and marketing advisers are wondering what’s going on in the wake of the substantial negative basis levels that have developed in some Canadian Wheat Board producer payment options contracts. “The wheat basis level is getting progressively worse,” said Lee Melvill, a marketing specialist with Alberta Agriculture. That’s been a surprise, he said, because […] Read more
Feed barley sales could slow wheat movement
Wheat movement off the Prairies this fall could be disrupted by the large volume of feed barley sold by the private trade for shipment in October and November. “It’s possible we could see some delays with wheat because of the amount of capacity that’s being used to move barley throughout this early period,” said Ward […] Read more
Malting barley hits record high
The world is thirsty for malting barley and the only seller with anything on tap is Canada. The result is prices for Canadian malting barley that have never been seen before. Poor quality crops in Europe and the United States have left the Canadian Wheat Board as the only major global seller of malting barley […] Read more
Prairie economy set to sizzle, says analyst
North American farmers, especially those in Western Canada, are going to have to get used to changing economic times. “I know it’s not something they’ll be used to, but they are going to have a new problem to deal with. The problem of prosperity,” said BMO Financial Group global financial strategist Don Coxe. Coxe has […] Read more
