Wittal: Wheat now leads U.S. grain markets

Our online grain markets columnist Brian Wittal 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.

May 27 — Financial markets did a turnaround Tuesday with losses across the board. Uncertainty over General Motors’ future or potential imminent bankruptcy, and over North Korea resuming missile exercises, put world markets in a bit of a negative mood.

The Canadian dollar was trading over 90 cents for part of the day and ended up a quarter of a cent, closing at US89.73 cents; the rally continues.

The Dow Jones June quote closed down 164 points today at 8,297.

Crude oil finished up $1, closing at US$63.45 per barrel for the day.

Corn finished even to down two cents a bushel today, while beans finished down 2.4 cents to up nine cents a bushel.

Wheat finished up 12-25 cents per bushel on the various U.S. exchanges today, while Minneapolis July wheat futures finished up 25 cents a bushel.

Canola finished down $3-$6 per tonne for the day while barley finished up $1.20 to close at $157.30 per tonne.

Beans seem to be hitting resistance with the reality that corn acres are now going to start to shift over to beans in some areas of the U.S. Canola charts show it is oversold, so we can expect to see a small pull-back as we head into the summer growing season. Canola deliveries continue to pick up in the country as producers finish seeding and are now looking to take advantage of the recent price rally and empty their bins for new crop.

Wheat has taken over as the U.S. grain market leader on weather concerns and delayed seeding which, at this late a date, would mean turning away from seeding wheat and increasing beans, barley or summerfallow.

The sign-up deadline for the Canadian Wheat Board’s C Series delivery contract is May 31. Check your bins one last time and make sure you have any wheat that you want to deliver into the old crop on an C series contract, if it’s not accounted for on your A or B series contracts.

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.

About the author



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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