18/8/22 Prices

18/8/22 Prices

The bargain hunters were in the corn and soybean pits at Chicago after sharp losses to both earlier in the week pushed prices to technical support levels. In the US corn / bean basis was pretty flat, cash bids reflecting the higher close in futures. Wheat futures in the US did not share the same […]

The bargain hunters were in the corn and soybean pits at Chicago after sharp losses to both earlier in the week pushed prices to technical support levels. In the US corn / bean basis was pretty flat, cash bids reflecting the higher close in futures. Wheat futures in the US did not share the same path higher as the row crops. Sharp losses were posted in all three grades. Spring wheat values out of the Pacific North West and across the Canadian Prairies were lower. The average ex farm bid out of SE Saskatchewan came in at C$373.02 for a Dec lift, down C$6.83 / tonne. Durum values across SE Sask also slipped, almost dollar for dollar with the 1CWRS13.5 grade milling wheat. 1CWAD13 durum was back on average C$6.36 / tonne for a Dec lift, now priced at C$440.57, still a significant premium to milling wheat. Winnipeg ICE canola futures found some support from the soybean pit at Chicago, moving a little higher. The strength did not spill across the Atlantic though. Paris rapeseed futures were generally lower again, shedding E6.00 in the Feb slot. Locally prices here have generally tracked the EU market this year. It will be interesting to see what the US "Inflation Reduction Act" actually does to inflation. At this stage it simply reads like a subsidy program for renewables, the IRS, and a productivity reduction bill for agriculture. Same path as EU and Canada is heading down, heads up guys, coming to a farm near you soon. This bill gathers much of its funding from a 15% tax on US corporations with a turnover greater than US$1b. Good luck getting that through the senate. US$1b this year, some assume that threshold will simply get lowered as time goes on, those unable to beat it creatively paying in the end.