Glacier FarmMedia COVID-19 & the Farm

Wittal: Lower crude values pressure canola futures

July 8 — Financial markets were a little better today but still ended the day with small losses for the most part.

The U.S. dollar rose half a cent today and the Canadian dollar dropped 0.48 cents, closing at US85.4 cents.

The Dow Jones June quote closed down 15 points at 8,116. Crude oil closed down $2.79 at US$60.14 a barrel.

Corn closed mixed, up 3.6 cents to down 1.6 cents per bushel today. Beans ended up even to down 50 cents a bushel today.

Wheat closed mixed, down eight to up seven cents a bushel on the various U.S. exchanges. Minneapolis July wheat futures closed down eight cents a bushel today.

Canola closed down $4.30-$6.70 per tonne today.

Barley closed down $3.10, at $165 per tonne.

Canola tried to gain back some of the past two days’ losses, only to fall to pressure as the day went on and finish down for a third day.

The continuing plummet of crude values the past week is also helping to drag canola futures lower. The reluctance of farmers to deliver old-crop canola right now is the only thing keeping futures from falling harder than they have to date.

For those of you who are curious to estimate yield potential in wheat and barley this year, here is a calculation tool to help you along.

Estimated yield equations

Wheat yield = heads per square foot x seeds per head x thousand kernel weight x 0.04356 ÷ 27.215.

Example: 44 heads/ft2 x 18 seeds/head x 30 grams tkw x 0.04356 ÷ 27.215 kg/bu. = 38 bushels per acre

Barley yield = heads/ft2 x seeds/head x thousand kernel weight x 0.04356 ÷ 21.772.

Example: 44 heads/ft2 x 20 seeds/head x 40 grams tkw x 0.04356 ÷ 21.772 kg/bu. = 70 bu/ac

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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