Wednesday was a negative day for our markets. Spot corn closed down 4 1/2, spot soybeans closed down 6 3/4, harvest winter wheat closed down 10 1/4 and harvest spring wheat closed down 7 3/4. In the overnight trade all of our markets have returned to the positive side. Oil closed up $0.27 yesterday at $72.10 per barrel. It is stronger again this morning with it currently valued at $72.30 per barrel. Our dollar has traded between a low of $0.702 US and a high of $0.704 US over the last 24 hours. This morning it is currently valued right in the middle of the range at $0.703 US.
Yesterday was somewhat of a disappointing day for our markets. They all started the day on the positive side but fell back as the trading day progressed. There was not any major news to pull the markets back and it is possible that the speculative funds cashed in some profits by liquidating a portion of their long positions in the corn and wheat markets. The corn market pulled back from the $5 per bushel level on the CBOT in the nearby market but has jumped over it again this morning.
President’s Trump tariff talk has already paid off somewhat for the United States. Last week they worked out a $500 billion bilateral trade deal with India with some agricultural components. This week the Thai Fee Mill Association announced they are working with their government to ease import rules to help make imports of US soybean meal and corn more competitive in their marketplace. Talk is they are looking at purchasing 3 million tonnes of soybean meal and 4 million tonnes of corn annually. There is also talk of reducing import tariffs on US ethanol.
A small negative for the biodiesel industry occurred with an announcement in Brazil that they would not increase their mandatory biodiesel blend into diesel from 14% to 15%. No main reason was cited for the cancellation of the increased blend however it was stated that this could change at any time in the future.
On a note removed from our commodities the Turkish egg producer council has announced they have started exports of 15,000 tonnes of eggs in February to the United States. These exports are expected to continue at least to the July of this year. The current shortage of eggs in the United States has come about due to the bird flu affects. This has resulted in eggflation which some commentators say was a major factor in President Trump getting elected. It is too bad that Canada could not ramp up production and fill the market shortage currently occurring.
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
