Glacier FarmMedia COVID-19 & the Farm

Wittal: Rains in forecast weigh on futures

June 16 — Financial markets continue to be in a defensive mode as they again closed with triple-digit losses. The U.S. dollar fell back four-tenths of a cent and the Canadian dollar also fell slightly. Hopes for a turnaround Tuesday did not materialize, which then prompted funds to continue to liquidate positions today, causing further erosion in the markets.

The Dow Jones June quote closed down 99 points at 8,520. The Canadian dollar closed down 0.07 cents at US88.14 cents today.

Crude oil finished down 15 cents, closing at US$70.47 per barrel.

Corn finished down two to four cents per bushel today, while beans finished up one to eight cents per bushel today.

Wheat finished down eight to 11 cents per bushel on the various U.S. exchanges today; Minneapolis July wheat futures ended down 10.2 cents per bushel.

Canola finished down $4-$9 per tonne for the day. Barley finished up $2 per tonne, to close at $164.

Canola tried to follow beans higher today, but current weather forecasts calling for beneficial rains across the Prairies over the next week put a bit of a damper on the futures and they ended down for the day.

The inability for grain futures to rebound today from Monday’s steep losses has some in the trade concerned that this could be another sign the markets are in for a continued correction in the short term.

The anticipation of moisture in the forecast has the trade on edge and it’s comfortable waiting and doing nothing until it sees the rain, or not.

World growing conditions and weather patterns are very mixed right now, which leaves a lot of uncertainty and guessing as to how big the world crop will be this year. This volatility will remain throughout the growing season and into harvest because of the sporadic start that we in North America have experienced so far this spring.

We are back on a longer roller coaster ride yet again.

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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