Wednesday was yet another mixed day for our markets. Harvest corn closed down 1/2, harvest soybeans closed up 1 3/4, harvest winter wheat closed up 7 1/2 and harvest spring wheat closed down 3. In the overnight trade all of our markets are on the negative side. Oil closed down $0.51 yesterday at $63.15 per barrel. It is weaker in trading again this morning with it now valued at $60.90 per barrel. Our dollar started out yesterday morning at $0.718 US and has trended mostly lower since then. This morning it is currently valued at $0.715 US.
Soybean oil has traded higher for 5 consecutive days and hit a new contract high in the nearby market yesterday. It is being supported with talks that the US administration is close to renewing their biofuel credit program for an additional 5 years. Part of the new program is a restriction on utilising foreign feedstocks like used cooking oil from China for biodiesel production. This would most likely result in more soybean oil being utilised for biofuel production which is currently supporting this market.
On the other side of the soybean market is some weakness in the price of soybean meal. The supply side of this market is starting to dominate with an abundance of supply coming from strong crush numbers in the US. How this will all balance out in both the short and long term is yet to be seen.
Winter wheat prices have finally rallied a bit in the US. No real strong reason for this other then it is likely that the speculative funds are just taking some profit from their very profitable current short position. There is currently a yield tour taking place in Kansas covering much of their HRW wheat growing regions. They are estimating that yields this year will be above last year’s numbers. This is yet just another negative for this market.
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
