The summer narrative is often focused on weather, which is clearly the case for 2019. Conditions are too dry in Canada and the U.S. Northern Plains. Flooding and delayed planting is proving extremely difficult for many in the Corn Belt and Central Plains. Acreage is unknown for many crops, as flooding is shifting farmers to second and third options. And yield potential goes down for crops like corn and soybeans when planting is extremely late.
Most of the week saw pressure across agricultural commodity markets (save for the rally during Friday's trade). There were a few things going on to move markets lower, but the most obvious was the weather. Across the Canadian Prairies, U.S. Corn Belt, and Central Plains, rain finally gave way to some consecutive days suitable for farmers to get into fields. Soybeans and corn were harvested in the U.S., remaining crops like canola and pulses were harvested in Canada, and winter wheat was planted. Adding to pressure was a stronger U.S. dollar. This strength makes exports from the U.S.