NORTON: Growing conditions improve
CRESTWOOD, Ky. -- Early season weather has been an issue for many crops. A shift to drier conditions in the U.S. and some moisture in Canadian growing regions will help producers. Even Argentina has dried out, allowing soybean harvest to pick up....
CRESTWOOD, Ky. - Early season weather has been an issue for many crops. A shift to drier conditions in the U.S. and some moisture in Canadian growing regions will help producers. Even Argentina has dried out, allowing soybean harvest to pick up.
Wheat prices are modestly higher than last week. Supplies are still quite large across the globe, keeping a lid on major upside.
In the U.S., weather conditions are improving for the winter wheat crop, as some dryness will help crops that had to deal with excess rains late in the growing season. Spring crop planting is done, and U.S. Department of Agriculture reported improving conditions of the emerged crop at 79 percent good to excellent, compared to 76 percent the previous week and 71 percent a year ago.
In Canada, weather conditions are also improving in the Prairies.
The International Grains Council recently raised its forecast for 2016 to ’17 global wheat production to 722 million metric tons from a previous forecast of 717 million metric tons. This would be the second-largest output on record, behind the 2015 to ’16 output of 736 million metric tons. The International Grains Council cited improving output potential in key growing regions in the European Union, U.S. and Black Sea.
There is little news for durum. Prices remain pressured with little movement from the lows in the past several months.
Canola oil prices continue to track with the broader vegetable oil market.
Prices were lower last week, with some spillover pressure from soybean oil. Additionally, Canadian growing conditions have improved with some dryness alleviated by timely rains. This has eased concerns for the newly planted crop and slowed previous upward momentum.
Saskatchewan has reported 81 percent of its crops are sown, although 3 percent of the cropland soil moisture is said to be surplus, and water supply is adequate in most areas.
Forward forecasts point toward ongoing improvements in soil and crop ratings.
Peas and lentils
The Global Pulse Confederation conference in Cesme, Turkey, revealed the global market will be tight for green lentils, yet again, but red lentil supplies are building.
Participants at the conference seem to agree planted area for lentils is likely larger than the Statistics Canada seeding intentions report from April. This belief stems from the good weather conditions, as the traditional planting window was coming to a close and returns for other crops were poor, prompting farmers to add area for lentils.
Pea prices on the international market were mostly unchanged last week.
Export movement is strong and stocks are tightening in net exporting countries.
USDA’s Kansas City office for Commodity Credit Corporation reported a request for 400 metric tons of yellow split peas.
Reports from the Canadian Grains Commission show movement of bulk mustard seed through primary and terminal elevators are in line with a year ago.
Three hundred metric tons of mustard seed were moved from May 16 to 22. This lifted the total to 19,200 metric tons for the current marketing year.
Farmers have delivered 27,900 metric tons of bulk mustard seed, compared to 30,400 metric tons during the same time last year.
U.S. barley planting is nearly complete, with the weekly Crop Progress and Conditions report showing 97 percent complete, compared to 88 percent for the five-year average.
The newly planted crop’s condition improved, with 77 percent rated good to excellent from 76 percent the previous week.