On the November World Agriculture Supply and Demand Estimates (WASDE) report, the USDA trimmed the average U.S. corn and soybean yield, which was a surprise to traders. Export demand for North American corn and soybeans is exceeding year-ago levels.
Traders surprised by USDA’s reduction in soy, corn yield estimates
Export demand for crops exceeds year-ago levels
Klassen: Feeder market climbs another step
For the week ending November 16, Western Canadian calves over 650 pounds were up $3-$6/cwt compared to seven days earlier. Calves under 650 pounds traded $4/cwt to as much as $10/cwt higher.
Klassen: Strong demand continues to sustain feeder market
The weaker Canadian dollar has enhanced the feeding margin structure on incoming replacement calves and this translated into stronger values on premium genetic packages. Finishing feedlot operators in Alberta and Ontario were fairly aggressive in Manitoba and Saskatchewan markets.
Klassen: Feeder market holds at higher levels
For the week ending November 2, Western Canadian yearling and calf markets were relatively unchanged from seven days earlier. Strong demand continues to support the feeder complex at historical high prices.
U.S. soybean crush sees record high for September
Healthy crush margins are enhancing domestic demand in Ontario and U.S
Corn and soybean prices are hovering near seasonal lows and are expected to percolate higher throughout November and December. Wheat prices have come off their highs in the short term but we’re expecting them to trend higher after the Southern Hemisphere harvest.
Klassen: Western Canadian calf market surges
For the week ending 26, Western Canadian calf markets were up $8-$12/cwt on average compared to seven days earlier. Pee-wee calves were up $20-$25/cwt compared to the prior week. Finishing feedlot operators were active buyers in all weight categories while backgrounders were cleaning up on smaller packages of calves under 550 pounds.
December a crucial window for soybean, corn sales
Crop prices in Ontario are currently making seasonal lows as they do during harvest
December is a prime opportunity for Ontario farmers to sell soybeans because U.S. farmer selling slows and the South American harvest hasn’t started. Ontario basis levels are strengthening during December, while the soybean futures are making seasonal highs.
Klassen: Canadian feeder markets trades premium to U.S. values
For the week ending October 19, Western Canadian yearling markets traded $3 to $5 on either side of unchanged compared to seven days earlier. Calf prices were $5 to as much as $10 higher. Strength in the deferred live cattle futures along with the weaker Canadian dollar has resulted in positive margins on incoming calves. Therefore, the calf market has developed a floor price.
Klassen: Calf market ratchets higher
For the week ending October 12, the Western Canadian prices for yearlings off grass and backgrounding operations were relatively unchanged from seven days earlier. The Lethbridge market for calves was up $8-$10 from week-ago levels while calf markets in the non-major feeding regions were up a solid $4-$6 on average.
Ending stocks for wheat lower for major exporting countries
Russian offers could evaporate if drier conditions continue over winter; Ukraine could impose export restrictions
The world cannot afford a crop problem next spring and summer. If there are drier conditions in the U.S., the corn market will incorporate a significant risk premium. This is our second reason to hold crop into the latter half of the crop year.