Tuesday was another negative day for our markets. Harvest corn closed down 4 1/2, harvest soybeans closed down 15 1/4, harvest winter wheat closed down 10 and harvest spring wheat closed down 9 1/4. In the overnight trade all of our markets have bounced back to the positive side. Oil closed down $0.11 yesterday at $68.26 per barrel. It is weaker again in trading this morning with it now valued at $67.08 per barrel. Our dollar with some very choppy trading has traded between a low of $0.688 US and a high of $0.695 US over the last 24 hours. This morning it is at the high end of the range with it currently valued at $0.695 US.
The US tariffs were implemented yesterday and low and behold the markets reacted negatively. We should point out that the stock markets in the US were also big time negative over the last few days. China immediately announced counter tariffs on a bunch of agriculture products with talk of more to come. Canada announced some counter tariffs with more to come over the next month and Mexico has an announcement pending for this weekend.
Also yesterday President Trump spoke to a joint session of congress and he doubled down on the need for the tariffs. Although once again his commerce secretary has held out an olive branch stating in an interview that the tariffs could be reduced as early as today. Of course this is all at President Trump’s discretion. There have also been announcements that President Trump would be meeting with the President from Mexico on Thursday and is expected to be speaking with our Prime Minister today.
Speculative funds have been large sellers in the marketplace over the last week and this helped to push prices lower. They still have a long position (looking for prices to go up) in corn but in soybeans and wheat they have been increasing their short position (looking for prices to go down).
It is nice to finally see prices positive this morning. The analysts will say our markets are currently oversold on the downside as they have gone down too far too fast. We will all be watching to see if it can keep the positive prices for the full trading day today.
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
