ProMarket Wire
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Site Created July 17, 1997;  Last Updated  May 07, 2021
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The author(s) of this newsletter are employed by R.J. O’Brien & Associates Canada Inc. (“RJO Canada”), a Canadian regulated FCM. The content and opinions expressed within this newsletter are solely those of the authors and are not necessarily shared by RJO Canada. RJO Canada is not responsible or liable for any actions taken from use of content, expressed opinions, accuracy, forecasted projections, or any other content expressed within the newsletter. Responsibility for all content of this newsletter remains solely with ProMarket Communications Inc. (403) 275-5555.
Sample Issue
Friday, April 30, 2021
ProMarket Wire provides cash market opinion assisting agri-business  (403) 275-5555  Rebroadcast is prohibited
Canola / Soy / Corn Flare-Up... Feeder Cattle Impaled... Feed Barley: The Wallet Will Sting Grain futures were all-fired up once again today . . . July soybeans romped nearly 30 cents higher breaking above $15.30/bu mid-day. July corn locked ‘limit up’ 25 cents/bu . . . July canola tested a high of $868.70/MT, up more than $25/MT. November canola raced to a high of $712.50/MT, up more than $22/MT into the closing bell. Minneapolis spring wheat hit a high of $7.70/bu, up 15 cents/bu late day. “This rally caught grain traders somewhat off-guard today. Funds were aggressive buyers” commented a CME trader. The strength in corn futures is astonishing considering some early day comments. “A large portion of (U.S.) corn sales remain unshipped” commented a Nebraska analyst. “High U.S. corn is now getting priced out-of-export contention”. Brazil’s corn production has been cut, but still a record crop. Feeder cattle slammed lower pressured by the ongoing corn strength . . . August feeders heaved $3.50/cwt mid-morning testing a low of $146.30/cwt. Equities markets pulled back despite ongoing better-than-expected earnings being reported. But some analysts are warning about a potential pullback in May. “Everyone is a PRO in a bull market. The hard part; can you recognize a weakening stock market, get out and stay out for an extended period commented a London investor. And our Cdn dollar flared higher early day with the June contract testing a high of 81.53 cents U.S. “The loonie continues to receive global buying attention due to the BOC plans to cut stimulus” a comment from Toronto.
Energies and Metals: Crude Oil Jul 63.47 -1.41 Gold Jun 1,769.20 +.90 Copper Jul 4.45 -.03 Late Day Financials: Toronto TSX 19,133 -12 Dow Jones 33,883 -177 S&P 500 4,176 -27 NASDAQ 100 13,871 -82 Bitcoin Jun 57,375 +4,110 U.S. Dollar 91.27 +.65 Cash Market Snapshot: Spot Cdn 81.40 dn.02   Jun Cdn 81.44 up.01   Sep Cdn 81.45 up.01 Attractive New Crop Flax Bids: Sales appear wrapping up for old crop flax business this crop year. Looking at new crop, DDC contract prices appear quite attractive. New crop DDC contracts now heard around $16 to $16.50/bu FOB bin for October to March movement. Growers note: If Black Sea flax can overcome China border crossing issues, Canada will lose export market share as Russia/Kaza flax prices remain at-a-discount. Strategy: Consider beginning your new crop flax pricing program. Canada continues to be the key supplier of flax to China accounting for about 60% of China’s late winter imports. The remaining 40% appears split between Russia and Kazakhstan. Milling Oat Demand Slows: 2CW oat buyer demand appears sailing into-the-sunset for this crop year. U.S. oat buyers now appear covered through to the fall market. Stats Can estimated a 6% decline in oat plantings this spring to about 3.6 million acres. This acreage decline was not a surprise to traders.  New crop DDC contracts may be wide-ranging. Some buyers will have sales on, some won’t. Strategy: Shop your oat buyers. 2CW bid new crop DDC ranges may be wider-than-expected. Fall oat premiums are possible. Southern Alberta Feedlot Barley Update: If you want feed barley delivered in May . . . the wallet will sting. Medicine Hat/Bow Island delivered barley is now heard as high as $330/MT ($7.18/bu) delivered May. Brooks and Picture Butte not far behind @ $325/MT ($7.07/bu) for May delivery. Even Provost-area delivered bids are as high as $325/MT ($7.07/bu) for May/June movement. Strathmore / Acme feedlots also reported paying $325/MT ($7.07/bu) for May delivery. Overall tonnage is limited, but try to go find the old crop barley. Larger-than-expected barley acres pegged by Stats Can @ 8.6 million acres, up 14% will be needed should China demand for Cdn barley for beer-making hold. Looking at new crop, Lethbridge-area feeders are contracting around $285 to $290/MT ($6.20 - $6.30/bu) delivered for Oct/Nov/Dec movement.     Palm Oil Prices Weakening: Palm oil has suddenly turned into the weak link of the global veg oil market. Malaysian palm oil prices slumped 5% last night while trading lower 4 out of the last 5 trading sessions. The reason; India’s out-of-control COVID epidemic is now eroding demand. INDIA’S COVID EMERGENCY NOW ERODING DEMAND FOR PALM OIL. Growers note: This may impact demand for Cdn pulses as well. Errol
Close Change Close Change Close Change Jul Canola $ 868.70 + $ 25.90 Jul Corn $ 6.732 + $ 0.250 Jul Chic Wheat $ 7.346 + $ 0.056 Nov Canola   $ 710.20   + $ 20.30   00   Dec Corn   $ 5.636   + $ 0.174   Dec Chic Wheat   $ 7.326   + $ 0.056   Jan Canola $ 706.70 + $ 18.00 Mar Corn $ 5.684 + $ 0.164 Mar Chic Wheat $ 7.360 + $ 0.064 Mar Canola $ 703.50 + $ 18.70 May Corn $ 5.710 + $ 0.150 May Chic Wheat $ 7.276 + $ 0.046 May Canola $ 694.60 + $ 15.10 Jul Oats  $ 4.056 + $ 0.030 Jul Minn Wht $ 7.636 + $ 0.192 Jul Beanoil $ 0.6239 + $ .0250 Dec Oats  $ 3.750 -  $ 0.010 Dec Minn Wht $ 7.710 + $ 0.164 Dec Beanoil $ 0.5203 + $ .0172 Mar Oats  $ 3.784 -  $ 0.004 Mar Minn Wht $ 7.736 + $ 0.160 Mar Beanoil $ 0.5090 + $ .0177     May Minn Wht $ 7.746 + $ 0.154 Jun Live Cattle $ 116.575 + $ 0.525 Jul Soybeans $ 15.342 + $ 0.320 Aug Live Cattle $ 118.625 + $ 1.225 Jul KC Wheat $ 7.034 + $ 0.090 Nov Soybeans $ 13.396 + $ 0.210 Oct Live Cattle $ 122.900 + $ 1.350 Dec KC Wheat $ 7.132 + $ 0.090 Jan Soybeans $ 13.384 + $ 0.206 Dec Live Cattle $ 126.250 + $ 1.275 Mar KC Wheat $ 7.200 + $ 0.092 Mar Soybeans $ 13.184 + $ 0.196 Feb Live Cattle $ 129.100 + $ 0.975 May KC Wheat $ 7.144 + $ 0.084 Jul Soymeal $ 426.10 + $ 3.10 Aug Fdr Cattle $ 146.750 -  $ 3.125 Jul Nat Gas $ 2.982 + $ 0.021 Dec Soymeal $ 401.00 -  $ 1.00 Sep Fdr Cattle $ 149.275 -  $ 2.350 Jun Lean Hogs $109.725 + $ 3.000