A number of new factors positive to grain markets have emerged in recent weeks. The grain export ban in Russia is old news, but market analysts are now pointing to the recent cold snap in Russia that may have affected the winter wheat crop. In Australia, the story in recent weeks has been heavy rains which are causing harvest delays and hurting crop quality. Many analysts believe that a shortage of high quality milling wheat is emerging around the world. The wheat quality problems here in Western Canada are well known. We don’t have nearly as much No. 1 and No. 2 as usual. Now, with Australia’s problems, the top grades of wheat with good protein levels will be in even shorter supply. In Argentina, the issue is drought and that is expected to reduce their soybean production. On the demand side of the equation, there are indications from some major importers that they are going to lock in their supplies before prices move even higher. As usual, there is speculation that China may enter the market for corn in a significant way. China has surprised analysts many times in the past, but if they do start importing a lot of corn, it could be a game changer. There has been lots of news to continue feeding the bull market that has developed.
I’m Kevin Hursh.
DynAgra, an independent Western Canada-based Company, is dedicated to providing growers with the tools to manage the risk and maximize the profitability of their farm business through the continued innovation of agricultural products and services. We are committed to developing and providing growers with the latest in precision agronomics, variable rate technology, soil fertility, crop protection, fertilizers, custom application and financial solutions.