North Gower Grains

Happy Canada Day!

Wednesday, July 1, 8:20 am

The markets are open today however our office is closed.  If you would like to make a contract please call me on my cell phone, 613-880-2707.

Tuesday was a positive day for our markets.  Harvest corn closed up 6, harvest soybeans closed up 4 3/4, harvest winter wheat closed up 9 1/2 and harvest spring wheat closed up 5 3/4.  In the overnight trade all of our markets remain on the positive side.  Oil closed down $1.25 yesterday at $69.50 per barrel.  It is weaker again this morning with it now priced at $68.92.  Our dollar started out at $0.702 US yesterday morning and then went up to $0.705 US in the afternoon.  It has stayed within that range since then with it currently valued this morning at $0.703 US. 

The USDA released their Quarterly Stocks Report yesterday and their Planted Acres Report and our markets responded with higher prices after trading lower in the morning.  The wheat market was given the most support with total planted acres coming in at their lowest on record for the US.  They were expected at 43.8 million acres but only came in at 42.7 million acres.  Last year they had total wheat acres of 45.3 million acres.  They also decreased wheat stocks by 15 million bushels to come in at 920 million bushels.

Corn acres were increased from 94.94 million acres up to 95.3 million acres.  Last year they ended up with 98.8 million acres.  Soybean acres were unchanged at 85.4 million acres.  Last year they had 81.2 million acres.  It was anticipated going into the report that possibly the soybean acres would increase slightly with a corresponding decrease in corn acres. 

Corn stocks were decreased slightly from the expected 5.392 billion bushels down to 5.29 billion bushels with the majority of the decrease coming from feed usage.  It was reported that these numbers could still change with exports remaining strong in the US. 

All in all the reports were supportive for the wheat market and neutral for corn and soybeans.  All the markets traded positive most likely due to the lack of negative influences from the reports.