Market watching
Producers are watching grain, oilseed and specialty crop markets with great interest these days as they make marketing decisions as well as cropping decisions for next year. The feed grain complex has been strengthening with better prices for feed barley in the domestic market. Pea prices have also improved with yellow peas now approaching $7 a bushel in some markets. In lentils, large green prices have remained strong, while red lentil prices have softened in recent weeks. Fixed price contracts have offered some attractive pricing for wheat and there’s a new pricing option for feed wheat that’s complicated, but seems to offer some good values. Canola prices are up and down depending on the day, but even on a down day prices are pretty good. Some producers have locked in around $11 a bushel for new crop canola production. Flax prices are amazing with values of $15 and $16 a bushel being reported. In comparison, mustard prices are disappointing and many observers wonder how mustard will hang onto acres next year in the face of more lucrative alternatives. The 2010 growing season certainly had lots of challenges, but with the outlook bright for most crop prices, it’s a good time to be a grain producer. I’m Kevin Hursh.
Correction: The American canola acreage reported yesterday was incorrect. There was an error in the Ag Canada report I quoted. American canola acreage did expand dramatically this year, but the total area is only about 1.4 million acres, not the 3.8 million in the Ag Canada report.