Market Report: June 19, 2024

Supply and demand have been the talk lately. Not just supply for new crop coming up but also the supply for old crop and what is left. Right now, with all the grain that has been held back this year there is more then there has been in the previous years. The main reason for grain being held back was just the anticipation of higher pricing. Currently Buyers are holding back buying with the anticipation that prices will be lower in the next few weeks just with the amount of supply out there and the predicted supply for this crop year coming up.    

Barely pricing delivered Lethbridge has been the same for new crop and old crop right now for an August-September movement. Pricing has ranged from. 270-290/mt. New crop and old crop pricing have practically collided. This is earlier than it normally happens. Typically, we don’t see that till mid-July into August. With the amount of corn that has been coming in the last few years it has been easier for corn shipments to happen. If barley pricing becomes higher then corn, then feedlots will keep bringing corn in.  

The weather has been all anyone could talk about lately. We have seemed to have made a full 180 degree from where we were last year at this time when it comes to the rain. This has been a welcome thing for almost all areas. Right now most farmers in the Edmonton area are just waiting for the heat to help the crops now that we have gotten the rain.  

Russian wheat pricing has declined now mostly due to the threat of bad weather has subsided. Everyone’s eyes were on Russia as they were just starting their harvest on new crop winter wheat. Harvest in the Black Sea region for wheat has also been where everyone has been watching and it seems to be as not been as bad as everyone feared when it comes to yields. So much so that Turkey has stopped imports. This is an area to watch with wheat exports as Turkey imports a fair share of wheat. 

Canola has been trending slightly higher, but the gains have not been enough to make much of a difference currently. The canola has only trended up $2.50/mt as of Tuesday Afternoon. This will be an area to watch in the next couple of weeks. One thing to keep in mind if you still have canola is space could be an issue as end users have been filling up for the June-August timeframes for months now. Also be share to monitor your canola quality if you decide to hold it as it could change to heated canola quickly.  

Sellers Tip: Do you have the space needed for new crop and old crop if you are still holding onto it?  

Because Farming is Forever,
Erin Harkle

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.