Grain markets lack direction
Are the best grain prices over or are they yet to come? Canola futures prices dropped last week and on top of that most grain companies widened their basis levels. A widening basis is a signal that more grain is being pushed into the system than what buyers can handle. Lots of producers want to market some grain for cash flow and to free up some bin space, especially space in aeration bins. The lentil market has been red hot, but it too seems to be taking a break. Although there are always some spot movement needs, many buyers seem to have ample lentil stocks right now. As well, the market is trying to assess quantities and qualities following all the bad weather. There are years when the best grain prices are available right off the combine. There are other years when those who market early regret it. Sometimes the entire grain complex moves up or down with most crops following the overall trend. Other times, we see different commodities move in opposite directions. This fall, the star performers are the aforementioned canola and lentils which have been at very profitable levels. Two of the big disappointments are field peas and mustard. Market analysts are giving mixed signals on where prices are likely to go in the weeks and months ahead. I’m Kevin Hursh.