US wheat wins, corn & soybeans sweat

Jul 08, 2024

Demand lifts wheat prices, but hot weather looms for key crops

By Farms.com

US wheat farmers have reason to celebrate after a positive day in the futures market. The price of wheat futures jumped on Friday, fueled by a confluence of favorable factors.

A weaker US dollar made American wheat more attractive to international buyers, and the arrival of a high-quality new harvest further boosted demand.

Adding to the positive sentiment, data released by the US Department of Agriculture revealed higher-than-expected wheat export sales for the upcoming marketing year. This suggests a strong global appetite for US wheat.

The outlook for other major US crops like corn and soybeans is less clear. The specter of hot and dry weather in July has cast a shadow over these crops, which require cooler temperatures and ample moisture during the crucial pollination stage. These conditions are essential for optimal yields, and their absence could lead to significant production shortfalls.

While overall trading volume remained subdued due to the recent US holiday and upcoming weekend, the price of wheat futures experienced a significant increase. September soft red winter wheat contracts closed up over 16 cents per bushel.

The price of corn and soybeans also saw modest gains, reflecting anxieties about the potential weather impact. However, these increases were smaller compared to the rise in wheat prices. Additionally, export sales data for both corn and soybeans fell short of expectations, adding to the uncertainty in these markets.

This situation underscores the inherent volatility of agricultural markets. While some crops benefit from favorable conditions and strong demand, others face potential threats from unpredictable weather patterns.

Video: Alberta Honey: A Day at Molenkamp Honey Farms

When was the last time you read the label on your honey?

We spent a day at Molenkamp Honey Farms with Michael Molenkamp, who has been keeping bees for 17 seasons and runs three to four thousand hives. In mid-September, he was finishing treatments and getting his bees ready for winter, and he walked us through how Alberta honey gets made.

Alberta has just 150 commercial beekeepers running 300,000 colonies, and together they produce 40% of Canada’s honey. Long summer days and golden canola fields give Alberta honey a light flavour that’s hard to match anywhere else.

Molenkamp calls Alberta beekeepers some of the most resilient farmers he knows. There’s plenty of Alberta honey to go around, but a lot on our shelves isn’t from here, so his ask is simple. Give the label a second look and choose honey made by Alberta beekeepers, or buy straight from a beekeeper near you.