Lots of Grain and Supply in the Market – SwiftCurrentOnline.com
Written by Glenda Lee Allan
Harvest is about 60% complete across the prairies right now.
With the harvest moving along one market analyst is describing the grain markets as neutral to slightly bearish.
“The main conundrum in the markets is just there’s a lot of grain, a lot of supply. I’d say it’s more or less a demand problem. We haven’t seen any incremental demand sources coming into the market,” said Neil Townsend is Director of CWB Market Research, CWB becoming G3 Canada Limited.
He notes a number of countries have seen a drop in their currency which makes exports more attractive, while imports look more expensive.
“People are trying to find sources of demand to allocate surplus grain or oil seed onto. So you have a situation in Russia where the end results of their crop was better than what was anticipated and they now probably have more export surplus. Today, they’re talking and discussing their export to tariff regime,” Townsend said.
He says without the demand to eat up the surplus it’s going to be hard to grind the prices higher.