World grain and oilseed markets are digesting the March 31 United States Department of Agriculture Prospective Plantings report while balancing demand implications of the COVID-19 pandemic. Quick look Soybeans: If demand continues, soybean carry-out should be lower in 2020. Corn: Market encouraging demand through lower prices. Wheat: Ontairo milling wheat supplies continue to be very […] Read more
Global grain supply chains hit with Minor COVID-19 snags
Commodities continue to move well in the United States and Canada
Klassen: Weaker fed cattle prices weigh on feeder market
It appears finishing feedlots and cattle buyers are coming to terms with the fact that the COVID-19 pandemic may last longer than earlier anticipated. The “hope” factor that this environment will be short-lived has evaporated. Compared to last week, western Canadian feeder cattle markets traded $3 to as much as $10 lower, with yearlings absorbing […] Read more
Klassen: Feeder market lacks buying interest
Market gives in to pressure from Chicago futures
Compared to last week, western Canadian feeder cattle markets traded $5-$8 lower on average, with yearlings dropping as much as $10-$12 in certain areas. It appears buyers are incorporating a risk discount due to uncertainty in beef demand longer-term. Rising unemployment levels, sluggish consumer confidence and a sharp drop in disposable income are all factors […] Read more
Commodity markets in uncharted risk territory due to COVID-19 concerns
Lower Canadian dollar has kept soybean and wheat prices up
World grain and oilseed markets are digesting logistical and fundamental changes due to the COVID-19 pandemic and historically low crude oil values. The risk environment is unprecedented; commodity merchants are in a “learn as you go” frame of mind because trading conditions are changing on a daily basis. Ontario soybean and wheat prices are up […] Read more
Klassen: Feeder market experiences fortuitous bounce
Last week, the feeder market started on a very sluggish tone. Buyers were sitting back waiting for the market to establish direction. By Friday, yearling prices were up $2-$4 compared to seven days earlier, while calves were trading $4 to as much as $8 above week-ago levels. Cow-calf producers and backgrounding operators have been holding […] Read more
Klassen: Feeder market remains vulnerable
Compared to last week, western Canadian feeder cattle prices were quite variable. Compared to seven days earlier, Alberta feeder prices were unchanged to $5 lower; however, the markets in northern Alberta, Saskatchewan and Manitoba were down $5 to as much as $10 in some cases. Weakness in the yearling markets spilled over into the lighter […] Read more
Large global soybean supplies continue to weigh on prices
Late March USDA report expected to be bearish for corn, soybeans
Ontario wheat, corn and soybean prices have been somewhat immune to the meltdown in the world financial and commodity markets. Ontario corn and soybean prices are relatively unchanged from last month while wheat prices are down approximately 20 cents/bushel on average. The March Canadian dollar dropped to 72.67 U.S cents on March 9, the lowest […] Read more
Klassen: Feeder market digesting lower beef demand
Compared to last week, western Canadian yearling prices were down $12-$18; mid-weight calves were down $10 to as much as $15 while calves under 550 lbs. were down $4-$8. The market is incorporating a risk discount due to uncertainty in beef demand for the second and third quarters of 2020. Feedlot margins are in negative […] Read more
Klassen: Extreme variability characterizes feeder market
Western Canadian feeder cattle prices were extremely variable over the past week which made the market hard to define. Compared to last week, yearling prices were quoted $2 to as much $6 lower while calves traded $2 lower as much as $5 higher. While some auction crowds were caught up with the negative news coverage, […] Read more
Coronavirus risk premium being built into crop markets
The virus’s spread is causing concern about impact on import markets
Ontario wheat, corn and soybean prices are being influenced by macro market conditions. The world grain and oilseed markets continue to digest the coronavirus situation. Softer import demand from China and Southeast Asia has resulted in lower world values. At the time of writing this article, it appears that Italy, certain regions in Europe and […] Read more
Cyber-Savvy Farmer
