As US markets opened today following Monday’s holiday, they came under pressure as favourable weather in the US corn belt and Statistics Canada data reveals an increase in wheat area put pressure on grains.
Moreover, crude oil also tumbled today with Brent crude falling back to $105/Bbl as recession fears and a stronger US dollar weigh on demand.
The USDA will release its crop condition report later this evening and analysts’ are anticipating a marginal decline in corn conditions.
Statistics Canada’s June Principal field crop area data was released today and took markets by surprise due to wheat area rising to the highest level in a decade, leading to a pressured wheat market.
Statistics Canada reported that nationally, farmers reported planting 25.4 million acres of wheat in 2022, up 8.7% from 2021. Higher total wheat area was led by spring wheat area, which rose 10.5% to 18.2 million acres.
With a climb in wheat area, the Canola area was reported to be down despite strong demand.
Farmers reported planting 21.4 million acres of canola in 2022, down 4.7% from the previous year. Despite high prices, area may have decreased as farmers shifted to alternate crops such as cereals.