Joe Dales's Blog (72)

Canadian Corn, Soy Stocks Tighter as of March 31

Canadian stocks of both corn and soybeans were lower as of March 31, even as production of both crops was higher in 2023. A Statistics Canada grain stocks report Tuesday showed total nationwide corn stockpiles as of the end of March at 8.267 million tonnes, down almost 9% from a year earlier but still above the March 31, 2022, stocks level of 8.147 million. National soy stocks came in at 2.046 million tonnes, down 0.9% from March 31, 2023, but still up from 1.888 million two years ago. Canadian corn output in 2023 amounted to 15.076 million tonnes, up about 3.7% on the year, while soybean production increased 6.6% to 6.981 million. Today’s report implies corn usage between December 2023 and March 2024 at 3.03 million tonnes, up from 2.78 million during the same period a year earlier. For soybeans, December-March usage of 1.68 million tonnes was above 1.42 million the previous year. StatsCan also noted that Canadian imports of corn were up 62.4% to 1.8 million tonnes as of Ma

All eyes on Russian weather as wheat rebounds

Wheat futures have gained back much of the ground they lost since the start of the year in the last couple of weeks. There is a tendency for ridge-building in parts of Russia in years when there is a transition from El Nino to La Nina. There was a foreshadowing of that this spring when a ridge emerged, resulting in portions of Ukraine, southern Russia and western Kazakhstan receiving less than half their normal rainfall amounts in March and April. That has analysts like SovEcon already contemplating reduced yields for the country’s winter wheat crop. Drew Lerner, president of World Weather Inc., said the ridge has gone away, but he expects it to return by the end of May and to dominate summer weather patterns. “The infamous drought in Russia of 2010 was a byproduct of this same environment,” he said. “That was a really nasty year.” The bad years tend to happen when it is a strong ridge that sets up further west in the country’s wheat growing region. However, there have been oth

Canadian borders on alert for avian influenza in dairy cattle

The Canadian government is expanding its surveillance program for a form of avian flu amid a growing outbreak in U.S. dairy cattle. Fragments of highly pathogenic avian influenza (HPAI) have been detected in pasteurized milk sold in the United States and a statement from Canada’s health agencies said lactating dairy cattle being imported from the United States will now require negative tests. Officials will be conducting enhanced testing of milk at the retail level to look for viral fragments. Voluntary testing will also be available for cows that are not presenting with clinical signs of HPAI, as part of enhanced industry biosecurity efforts. The U.S. Food and Drug Administration said last week about 20 per cent of milk samples from across the country tested positive for fragments of avian flu. The Canadian statement said commercially sold milk and milk products remain safe to consume and pasteurization of dairy products is effective in inactivating the virus that causes HPAI, eve

Moisture should help Sask. farmers, agronomist says

The recent rainfall across north-central Saskatchewan should help farmers with seeding, according to one agronomist. Elliott Hildebrand, who covers the area around Saskatoon, said this spring’s precipitation could create better conditions for farmers after dry conditions in recent years. “We’ve been in a moisture deficit situation for several years now,” said Hildebrand. “So this is all welcome moisture now to help…better conditions maybe than we’ve had for a few seasons, so it’ll definitely be helpful.” After a wet week in the region to start the month of May, more precipitation is expected this week. “We haven’t had much precipitation in the last few years, so I’d say the outlook (for the year) is cautiously optimistic at the moment. It’s a more positive start than we’ve had for a few seasons,” Hildebrand said. “We’re going to need more (precipitation) through out the season as always. But it’s pretty normal at this point. Routine to good relative to the last three, four seasons

CPKC Update

The Teamsters Canada Rail Conference announced the results of its strike vote this week, with 98 percent of members voting in favor of a strike mandate.