Canola prices hit their highest close in more than a year after official data for Saskatchewan revealed that dryness and frost had got crops in in Canada’s key producing province off to an unusually poor start.
Saskatchewan officials, in their first crop ratings of the season, pegged 65% of wheat in the province in “good” or “excellent” condition, well below the reading of 90% a year ago and 86% at the start of June 2013.
For canola, the reading was 44% – compared with 87% a year ago and 79% at the start of June 2013.
Other crops, including barley, durum and flax, showed lower readings too, with chickpeas looking particularly affected, with a good or excellent reading of 34% – down from 99% a year ago, and at a time when a squeeze on Indian supplies from poor weather has sent prices soaring.
‘Concerns about crop germination’
The decline follows dry weather which while allowing rapid spring seeding, which has reached 97% as of the start of the week in Saskatchewan, well above the average of 73%, has hampered early crop development.
Proportion of Saskatchewan crop rated “good” or “excellent”, and figures in 2014 and (2013)
Spring wheat: 66%, 92%, (86%)
Spring wheat: 65%, 90%, (86%)
Lentils: 56%, 90%, (84%)
Durum: 54%, 90%, (79%)
Canola: 44%, 87%, (79%)
Chickpeas: 34%, 99%, (83%)
“Rain is needed in much of the province to help recharge the topsoil,” the Saskatchewan crop report said.
“Concerns about crop germination and emergence continue in many areas that have not received much rainfall since April.”
Furthermore, crops have been tested by freezes, which continued into last weekend.
“Heavy frost late last week has caused damage to crops and producers continue to assess the damage,” the briefing said, adding that “some reseeding has occurred”.
Since last week’s frosts, government crop insurance corporations in Saskatchewan have reportedly registered 900 crop insurance claims, and in Manitoba 1,500 claims, in the main for damaged canola crops.
The data helped a further rise in Winnipeg canola futures, which for July delivery closed up 1.5% at Can$497.70 a tonne – now up more than 5% so far this week, and the highest close for spot contract since May last year.
Canada is the top exporter of the rapeseed variant.
Spring wheat futures for July ended up 2.3% at $5.76 ѕ a bushel in Minneapolis, on a strong day for winter wheat contracts in Chicago and Kansas City too.
(Source – http://www.blackseagrain.net/novosti/canola-prices-hit-one-year-top-as-canada-crop-damage-revealed)