We can feel the grain industry holding its breath.
A unique mix of environmental and geopolitical events this year has led to an industry-wide standoff as everyone waits to see how the commodity markets will respond.
Throughout this past month, my conversations with grain companies and producers alike have held a similar tone - people just aren't selling. A wet fall and delayed winter weather have given farmers a chance to catch up on fieldwork, while the earlier season drought left the impression of quality issues, moisture problems and crop shortages. Whether this is the case or not, the grain industry as a whole seems to be waiting for something.
Conflicting yield estimates between StatsCan and SaskAg have led to some confusion and the latest SaskAg Crop Report (Oct 10 - 16) indicated "All crops are estimated to be above the 10-year average for quality and to be in the top two categories for all crops." Regardless of the debate, we all look forward to the numbers in AAFC's final report in early December.
In the meantime, we encourage you to get your samples graded so you know the quality of the product in your bins when the time comes to sell. Third-party sample analysis is a vital first step in the grain marketing process. That minor investment can give you the confidence to be more than a price taker.
Best of luck with your fall activities.
Cheers,
President
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Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own due diligence.
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