Monday was a negative day for our markets. Spot corn closed down 8 3/4, spot soybeans closed down 10 1/2, harvest winter wheat closed down 9 1/4 and harvest spring wheat closed down 10 1/4. In the overnight trade all of our markets are once again negative after flirting with the positive side. Oil closed up $0.30 yesterday at $70.70 per barrel. It is weaker in trading this morning with it now valued at $70.52 per barrel. Our dollar started out yesterday morning at $0.704 US and then trended lower going down to $0.700 US late in the trading day. It has bounced up this morning with it currently valued at $0.702 US.
Corn and soybean prices were pressured yesterday with crop progress in South America drawing attention. Favourable dry weather in Brazil is helping the soybean and first crop corn harvest to progress and also planting of the second corn crop. In Argentina the recent rain events have helped the currently growing corn and soybean crops.
Yesterday we talked about the Mato Grasso region of Brazil. Today we have the numbers for all of Brazil. As of last Friday their overall soybean harvest had reached 38% complete. This compares to 37% at this time last year and the 5 year average is only 34%. The safrinha corn crop was reported at 54% planted. This compares to 57% last year and the 5 year average of only 39%. Finally the first corn crop harvest has reached 34% complete. This is right in line with last year’s 35% complete and the 5 year average of 33% complete.
Corn exports from Argentina have hit some record numbers for the last couple of months and are projected to continue the fast pace. Their government has reduced export taxes on corn and have released corn out of government reserves to keep the exports going. It is possible that this steep rise in exports are taking away much of the Chinese market from the US. No confirmation on this but rumours are abounding that this is occurring.
President Trump announced yesterday that his administration would be moving forward on the 25% Tariff’s against both Canada and Mexico next week. Short term this is supporting the soybean oil market as it will make canola and canola oil imported from Canada more expensive in the US. How it affects our commodity markets going forward will depend on each country and their counter tariff responses. Remember Mexico is the US largest purchaser of corn exports and we are their largest purchaser of ethanol exports.
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
