Thursday was a mixed day for our markets. The markets were closed on Friday for the US Independence Day holiday. Harvest corn closed up 3 1/2, harvest soybeans closed up 1 1/4, harvest winter wheat closed down 7 1/4 and harvest spring wheat closed down 1 3/4. In the overnight trade all of our markets have fallen on the negative side. Oil closed down $0.45 on Friday at $67.00 per barrel. It is flat in trading this morning with it now valued at $66.99 per barrel. Our dollar traded between a low of $0.734 US and a high of $0.737 US on Friday with it closing out at $0.735 US. It has weakened in the overnight trading with it currently valued this morning at $0.732 US.
Last week was a positive week for our markets between some basis changes and up prices on the CBOT. Both spot and harvest corn closed up $8 per tonne with next year’s harvest up $5 per tonne. Spot soybeans were unchanged however this year’s harvest was up $11 per tonne and next year’s harvest was up $8 per tonne. Spring wheat was up $14 per tonne on the spot market and $6 per tonne for next year. Spot winter wheat was up $17 per tonne with next year’s harvest up $10 per tonne.
Prices pulled back hard in the overnight trading as traders returned from their three day long weekend. It seems that the market was really looking for President Trump to make an announcement late last week during their Independence Day festivities about how agricultural trade was going to increase with at least China. Without this announcement the markets are focused on what possible negative affect the trade policies will have this week with the original 90 day tariff pause to expire. Also favourable growing weather in the US remains in play with the forecast for this week very beneficial for continued strong crop growth.
OPEC + members agreed on the weekend to another round of production increases for this summer which was slightly larger than current monthly increases. Where this oil will be shipped and sold to we will have to wait and see. They are increasing production between 400 and 500 thousand barrels per day for the next 3 months.
One positive note this morning for the corn market is that the Safrinha crop harvest in Brazil is reported at only 40% complete. Their 5 year average is 57%. There are also reports that this corn is being slow to get to the export market which is keeping US corn attractive at least in the short term for world purchasers. On the negative side stronger yields then projected are being harvested in Brazil.
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
Tony Mitchell | 613-227-2525
Office | 613-489-0956
