Wittal: Traders on weekend weather watch

June 4 — Financial markets and energy markets rebounded today and helped to establish a positive mood for the rest of the markets to follow.

The weather for the coming weekend is seen as mixed and helped to support grains and allowed them to regain some of yesterday’s heavy losses that most traders felt were overdone. Uncertainty over the weather this coming weekend could see traders become gun-shy going into the weekend and reducing their positions tomorrow, depending on their confidence in the forecast.

The Canadian dollar closed 0.91 cents higher at US91.17 cents today, while the Dow Jones June quote closed up 61 points at 8,730.

Crude oil finished up $2.69, closing at US$68.81 per barrel.

Corn finished up 15-17 cents per bushel today, while beans finished up 32-48 cents. Wheat finished up 17-28 cents per bushel on the various U.S. exchanges today; Minneapolis July wheat futures finished up 28 cents.

Canola finished up $10-$12 per tonne for the day. Strong demand for canola by grain companies to meet waiting vessels at the West Coast, along with weather forecasts calling for snow and frost for parts of Western Canada over the weekend, has added some momentum to canola futures.

Barley finished up $2.20 to close at $167.20 per tonne.

Weekend weather is going to set the tone for the canola markets going forward. Any frost damage at this point will no doubt mean reseeding or reduced yields, which will certainly continue to add support to canola futures going forward.

That’s all for today. — Brian

— Brian Wittal has spent over 27 years in the grain industry, including as an elevator manager and producer services representative for Alberta Wheat Pool, a regional sales manager for AgPro Grain and farm business representative for the Canadian Wheat Board, where he helped design some of the new pricing programs. He also operates his own company providing marketing and risk management advice for Prairie grain producers. Brian’s daily commentaries focus on how domestic and world market conditions affect you directly as grain producers.

Brian welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts. Contact Brian today.

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Brian Wittal

Brian Wittal has 30 years of grain industry experience and currently offers market planning and marketing advice to farmers through his company Pro Com Marketing Ltd.

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