Market Report: July 3, 2024

Happy July Everyone! 

Alberta crop condition ratings ticked slightly higher in the week ended last Tuesday (June 25). The report out Friday (June 28) pegged the overall condition of major crops across the province (spring wheat, oats, barley, canola, and peas) at 74% good to excellent, up 2 points from the previous week and a couple of points above the 5- and 10-year averages. 

At 77% good to excellent, the condition of the spring wheat crop was up a single point on the week, while oats improved 2 points to 74% and canola gained 5 points to 70%. The condition of the barley and pea crops held steady at 76% and 77% good to excellent, respectively. 

Weather: Precipitation was variable over the week, with most of it arriving as thunderstorm activity. Surface soil moisture decreased provincially this past week as temperatures warmed up and days were windy across much of the province, especially in the southern half. While good for crop development, many areas could use more rain, the report said. 

Wheat: Canada and the US released their June wheat estimates last week with no large changes from pre-report expectations. Total Canadian wheat area is forecast to reach 26.7 million acres, which is down 300,000 acres from last year and the March estimates.  

Canola: Canola futures have suddenly come alive, rallying $22 to $24/tonne higher coming out of the Canada Day long weekend, and putting bullish rebound stamp on its first trading session of July. 

International: North American stock index futures and European stocks markets are weaker coming into this morning, though Asian markets were higher overnight. Global markets are feeling some pressure as traders digested European inflation data and braced for France’s election results. 

Because Farming is Forever,
Maddy Mills

At Agfinity, we value our longstanding relationships with producers and remain committed to providing the best options for your grain sales. Traditionally, we have offered two types of contracts: Broker Notes and Grain Purchase Contracts (GPC). Given the current circumstances, we are focusing on Broker Notes to ensure timely payments and continued success for everyone involved.

Broker Note:

1. We source the optimal buyer for your grain by gathering multiple bids. Once collected, we present them to you for approval on price, delivery timeline, and quantity.
2. The buyer pays you directly for your grain.
3. You will receive an invoice for the brokerage that is above the agreed to net price on the broker note.
4. The brokerage fee can be paid by the buyer, the seller, or split between the two depending on the broker note terms.
5. If it’s a delivered freight by Agfinity, the seller pays for freight.
6. Payment terms typically range from 10 to 21 business days, depending on the buyers’ terms.

We understand that this is a challenging time, and we are committed to overcoming it together. By trading with Agfinity through Broker Notes, you not only benefit from optimized grain sales but also contribute to a cooperative effort that ensures mutual success.