Monday was another negative day for our markets. Spot corn closed down 4 1/2, spot soybeans closed down 10 3/4, harvest winter wheat closed down 8 1/2 and harvest spring wheat closed down 7 3/4. In the overnight trade all of our markets have turned back to the positive side. Oil closed down $1.79 yesterday at $73.17 per barrel. It is stronger in trading this morning with it now trading at $73.80 per barrel. Our dollar had a high early yesterday morning of $0.697 US and has trended mostly lower since then. This morning it is currently valued at $0.694 US.
Outside markets had a big pull back yesterday with reports that a Chinese company has come up a with much less expensive Artificial Intelligence product then was previously thought possible. This led to a very large pull back in many high tech stocks and generally led to a negative feeling for investors. This sentiment carried over into our commodity markets with prices falling for much of the day. Luckily all of our markets bounced back a bit to close off their lows for the day.
Weather in South America is a continuing market mover for corn and soybeans. With too much rain keeping the soybean harvest slow in Brazil their Safrinha corn crop planting is reported at only 1% as of last Friday. This compares to a 5 year average of 11%. The slow harvest and the slow planting pace are both supportive for the soybean and corn markets in the short term.
Argentina is receiving some rain events and the 15 day forecast is calling for more rain. It seems that the rains that have occurred are variable and that much of the growing area has probably not received enough precipitation to reverse the previous drought like conditions. How much damage was made to the growing crops in Argentina and how this will affect the final yield is a story that is yet to be told.
With all the tariff talk over the last week the war in Ukraine is not getting much ink. If (and when) this war ends it most likely will be negative for our markets. The reason being that the agricultural exports from that area will become more readily available on the world markets. It should also lead to more supplies down the road as production would slowly ramp back up to prewar levels. We should all be watching what President Trump is doing about this war and when the end will occur.
If you would like to talk about the markets or price some of your crop for the future or in store, please reach out to us via phone or email to info@northgowergrains.com. Prices quoted herein are for product at our elevator.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Office | 613-489-0956
