Wednesday was a positive day for our markets. Harvest corn closed up 5 1/4, harvest soybeans closed up 3 1/2, harvest winter wheat closed up 7 1/4 and harvest spring wheat closed up 5 1/4. In the overnight trade corn and the wheat sector are positive with soybeans now on the negative side. Oil closed down $0.57 yesterday at $62.85 per barrel. It is stronger in trading this morning with it now valued at $63.20 per barrel. Our dollar started out yesterday morning at $0.729 US and has trended higher since then. This morning it is currently valued at $0.732 US.
Our markets were supported yesterday with trade talks occurring and supposedly to occur between US representatives and other nations. Active talks between the EU and US are taking place with no specific announcements on what progress is being made. However, just the fact that they are still talking is seen as a positive. Rumours out of the US seem to be hot that President Trump and President Xi are going to talk sometime tomorrow. Once again until this actually occurs it is hard to count on but even a rumour of this brings some optimism to our markets.
Weekly ethanol production in the US increased a strong 5% up to 1.105 million barrels per day last week. Exports were strong coming in at 150 thousand barrels per day. This is roughly double of the previous week and is also above last year’s level of 123 thousand barrels per day. With increased domestic demand and the strong exports ethanol stocks only increased 0.7% to reach 24.44 million barrels. Ethanol production is up 3.6% this year in the US however corn used for the ethanol grind is only up 0.6%. The difference is made up by increased usage of grain sorghum in the production process.
Ukraine has been known as a low cost provider of corn on the world market during most of the war between them and Russia. They have needed to make export sales to bring in currency to help finance their war effort. Recently the US has been the low cost corn provider on the world market and exports of corn out of Ukraine are falling back. With the corn harvest now reaching the 40% completion mark in Argentina they have lowered their prices and have become aggressive sellers on the world market. Years ago the US dominated the world corn market but with production increases around the world they are now just a large player not the dominant force every year.
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
