Mike was born, raised and still resides in Calgary, Alberta. He holds a bachelor’s degree in economics, with a concentration in Applied Energy and a minor in Business; and an MBA, each from the University of Calgary. Between completing his undergraduate education and beginning his MBA, Mike worked for a mid-market oil and gas firm for two years. Mike’s intrigue in agriculture began during his MBA following a guest lecture presented by an agriculture professional. His intrigue led him to pursue a role with an agricultural start-up prior to beginning his journey with Agfinity. Mike enjoys learning about the ever-evolving agriculture industry and connecting with the people who are instrumental to bringing Canada’s agriculture products to market. In his spare time Mike is an avid outdoorsman and hockey player. He can be found hunting and fishing in the Alberta wilderness or playing hockey with close friends. Often, Mike’s outdoor pursuits lead him to meet farmers and ranchers, bringing his work full circle.
Because Farming is Forever
Mike Szoke
Market Report – Bryce Taylor
Hi everyone and welcome to this weeks Agfinity Market Report. Western Canada is currently in the middle of the 2023 harvest. The Red Deer Advocate reports that the Majority of Central Alberta farmers are actively harvesting according to the Alberta Crop Report. In Alberta 17.9% of major crops have been combined – the south region sits at 49.5%, the northwest region is 3.8% and the Peace region is at 6.4 percent.
The dry conditions this growing year are leading to decreased crop yields. In 2023, decreased production for most crops was driven by lower yields because of dry conditions in Western Canada. Across much of the Prairies, lower than-average precipitation and high temperatures have resulted in poorer crop conditions than 2022. In Saskatchewan, dry conditions continue to be a concern, mostly notably in the southwest and west-central regions. This According to Statistics Canada model-based principal field crop estimates released August 29, 2023.
Globally, China’s demand for U.S. grains is falling. Despite active buying earlier in the year, China corn purchases have trended lower in the last 3 years with Chinese commitments to buy US corn this year down 91 percent year over year. Ukraine expects a big canola crop with what analysts expect to be a record crop of canola. Russia’s exports of wheat, barley increased in August compared to July.
In the Western Canada market, the canola crop has been confirmed to be significantly less than earlier estimates in the spring. Canola production is expected and to fall by 6.1% according to Stats-Can. Yields are expected to fall 8.8% to 35.4 bushels per acre. Saskatchewan yields are projected to decrease 13.9% to 32.7 bushels per acre. This may help explain the recent gains in the Canola futures and the increased prices offered for Canola in AB and SK. Specials have been available for up to $18.86/BU DLVD Sept Central Alberta for limited tones in the last week. Currently canola bids available are in the range of 17.80 -18.00/BU DLVD central AB and around $17.20/BU DLVD SK for September.
In Wheat news, according to a report last week, Paris wheat prices dropped as big Russian supplies depress the wheat price mood. European wheat prices fell for a second consecutive session on Monday. Pressured by hefty global supplies, notably in Russia. In a recent article from Western Producer, “North American wheat price tumbles despite tight stocks”. We have seen wheat futures decreasing over the last couple of weeks. Currently bids for HRS #1 of around $9.60/BU DLVD central AB and $9.20-9.50/BU DLVD central SK for September.
In other news, according to NewGen Farmer, U.S Corn is on sale. Looking at new crop corn exports from the U.S. current export commitments are only 289 million bushels as of last week’s weekly export report. The USDA pegs new crop corn exports at 2,050 million bushels. We have noticed U.S. Corn has added pressure to Barley prices since August with many end users changing over to corn this year and the new crop corn contracts available in Lethbridge for $320-330/MT Delivered November. We have seen current Barley prices have flatten out $325 to $335/MT Sept-Dec Delivery Lethbridge.
Oat production, according to Stats-Can is projected to fall by 53.5% to 2.4 million tones, the lowest production in more than a decade. The decrease is attributable to lower harvested area which is expected to fall by 40.9% to 2.0 million acres, and lower yields, which are expected to fall by 21.4% year over year to 76.9 bushels per acre in 2023. We have heard from buyers this may be reason for increased demand for milling oats that has seen an increase in bids for #2 oats. Currently we have seen bids available for $5.30/BU DLVD for Sept-Dec increasing to $5.50/Bu Jan-Mar in Central AB. We are still seeing demand for feed oats around the $4.00-4.20/BU FOB Central Alberta.
Sellers Tip: Currently we are seeing lower volatility in the market. At Agfinity, we are able to find premiums from buyers when they are available, but you can’t take advantage of them if you don’t market your grain. Please call us today at 1-888-969-5552 to talk strategies for old and new crop marketing.