Grain News and Updates
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Wet and rainy conditions have kept Canada grains on the up and up as the season gets underway. Forecasts for continuing rain are very promising for many grain producers, although in areas that have been hit particularly hard the weather is threatening the loss of spring sowings.
Image: dan / FreeDigitalPhotos.net
The Canadian Wheat Board predicted that as many as twelve and a half acres of sowings could be lost due to the persistent rain. The market has reflected these predictions, with oat prices jumping up to more than $2 a barrel for delivery in July.
Spring wheat, another one of Canada’s big crops, gained 4.3 per cent, going up to over $5 a bushel.
The wet conditions in Canada haven’t been the only thing motivating investors to start buying. External markets have been strong, as fears that Europe’s economy might collapse have been eased, making many assets more competitive on the global export market. Oil, for example, jumped by 1.7 per cent.
China recently made a purchase of 120,000 tonnes of American corn. Not a huge purchase, but enough to keep interest in the grain. But the wet weather is a rising concern in both America and Canada, as crop ratings for corn and soybeans can be expected to drop by as much as 1 to 2 per cent points if the wet weather doesn’t let up. Soybeans will suffer the most if the wet weather continues, with winter wheat harvest also seeing some slow-down.
Meantime, corn and soybeans have increased by 1.2 per cent a bushel and at the current trend are looking good for July – good news since both were slightly below forecast in May.
A rally in European prices can be attributed to the faltering British pound, while European specialists are calling for improved crop conditions to keep prices healthy and manageable through harvest, particularly as the harvest in Southern Spain approaches.
The prices in London, England, for wheat, grew by just under two pounds, followed closely by Paris.
Canola seed in Europe is also gaining ground, up by nearly four Euros for delivery in November.
