Wednesday was a mixed day for our markets. Harvest corn closed up 1 1/4, harvest soybeans closed down 10 1/4, harvest winter wheat closed down 3/4 and harvest spring wheat closed up 1 3/4. In the overnight trade new crop corn has turning negative, soybeans and the wheats have turned to the positive side. Oil closed down $0.02 yesterday at $68.31 per barrel. It is still down in trading this morning with it now valued at $68.02 per barrel. Our dollar traded between a low of $0.729 US and a high of $0.732 US yesterday with it closing out at $0.730 US. It is flat this morning, currently trading at $0.731 US.
It was a relatively quiet day in the corn and wheat markets, but soybeans bore the brunt of the pressure once again, finishing the session with double-digit losses. The continued downward trend across the grain complex appears to be driven largely by favorable weather conditions across the U.S. Corn Belt. Despite global headlines and macroeconomic events, traders remain laser-focused on weather models and forecasts, which are currently leaning bearish for prices.
This hyper-focus on weather has overshadowed other market drivers for now, but that could shift later this week with the release of the July WASDE report. If the report reveals tighter balance sheets or surprises in yield or demand projections, we could see a pivot back toward trading fundamentals instead of just long-range weather.
Soybeans, in particular, have seen a sharp reversal. After testing yearly highs in June, prices have since tumbled to a fresh three-month low. While favorable weather is a key factor, another contributor is the lack of Chinese buying for new crop soybeans — a development that’s raising eyebrows and adding a layer of market anxiety.
That said, it’s worth noting that last year around this same time, China stepped in and began purchasing U.S. soybeans, providing a spark to the market. So while sentiment is gloomy at the moment, the door isn’t fully closed on potential demand-side support returning to the picture.
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
