Thursday was a positive day for our markets. Harvest corn closed up 1, harvest soybeans closed up 6 1/2, harvest winter wheat closed up 7 1/2 and harvest spring wheat closed up 1/4. In the overnight trade corn is mixed with soybeans and the wheat sector on the negative side. Oil closed down $1.74 yesterday at $66.57 per barrel. It is stronger in trading this morning with it now valued at $67.29 per barrel. Our dollar had a high yesterday afternoon of $0.732 US before falling back to $0.729 US after President Trump made a trade announcement about Canada. It has gained back a bit since then with it currently valued this morning at $0.730 US.
President Trump rocked the relationship once again between our two countries sending a letter to our Prime Minister stating that a new round of tariffs would be set at 35%. He also stated that if we increase any tariffs on their products that the new tariffs would go that additional amount. Supposedly they are upset with what has been occurring since the trade / tariff conversation has been going on this year. This new twist led to our dollar losing about 30 basis points almost immediately. How all of this will affect our commodities is yet to be seen but any decrease in trade between our two countries is generally thought off as negative.
Today the USDA releases their monthly WASDE report. The marketplace is watching to see if they increase the yield prospects for their domestic corn crop and also how they deal with the harvest in South America with reported higher supplies. It was felt that yesterday Managed Money took some profits out of the markets and cashed in some of their short positions before the data release today.
New crop corn sales in the US are currently 49% ahead of the same time in 2024. It should be noted that the low price of corn is attractive for importing nations. Notably Mexico is continuing with strong purchases with sales to them representing 64% of the outstanding amount.
Friday’s thought: Learn to sit back and observe, not everything needs a reaction!
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
