North Gower Grains

Wednesday was a negative day for our markets.  Spot corn closed down 11 1/2, spot soybeans closed down 16 3/4, harvest winter wheat closed down 10 1/2 and harvest spring wheat closed down 3 1/4.  In the overnight trade all or our markets remain on the negative side.  Oil closed down $7.19 yesterday at $95.08 per barrel.  It is weaker again this morning with it now trading at $91.90 per barrel.  Our dollar started out yesterday morning at $0.736 US and then went down to $0.733 US around noon.  It has come up just a bit in the overnight trading with it currently valued this morning at $0.734 US.

With talk that the war in Iran is at least on hold our markets had a big negative day yesterday.  Some of the war premium is leaving the markets most likely as managed money is cashing in some of their long positions (looking for prices to go up).  With more talk this morning that an agreement between Iran and the USA is getting near our markets are still on the negative side.   The change in crude oil prices over the last 48 hours is directly related to how the outside world is reacting to the increased chances of a lasting peace.

The only good thing to say for our markets is that prices have not fallen farther.  Nobody really knows how much war premium is currently priced into the market.  If the war is over will prices grind lower or is the majority of war premium already out of the market.  This is something that only time will tell.

If an agreement is met this week the next big thing for our commodities will be the meeting next week between President Trump and President Xi.  The potential market swings coming out of this meeting are endless to think about.  If a favourable trade agreement is made for our commodities prices could spike higher.  Of course, if things do not go well in the meetings prices could go lower.  Again, this is just something that we cannot control and will have to watch to see how it plays out.