Tuesday was a mixed day for our markets. Harvest corn closed down 4 1/4, harvest soybeans closed down 1/2, harvest winter wheat closed up 7 1/4 and harvest spring wheat closed up 5 1/4. In the overnight trade all of our markets have made it to the positive side. Oil closed down $0.99 yesterday at $66.21 per barrel. It is stronger in trading this morning with it now valued at $66.36 per barrel. Our dollar started out yesterday morning at $0.731 US and has trended higher since then as the US currency has weakened against most other major currencies. This morning it is currently valued at $0.736 US.
Row crop prices closed lower yesterday with the wheat market positive. Corn prices were pressured by the continued strong and stable 74% good to excellent rating from the Crop Progress Report on Monday. This is the highest corn rating for this time of the year in 16 years. The prospect of a stronger then trend line yield is very real in the US this year and the marketplace has started this discussion and what it might do to prices.
Even with the decrease in the crop rating for soybeans they were unable to close positive yesterday. It seems that the rain events that occurred yesterday in the US were in areas that the soybean crop needed some moisture and early expectations are that the crop rating will rebound next week. Lack of Chinese purchases for new crop made news yesterday with Brazil selling an additional three million tonnes to China for October delivery. This is traditionally a time that new crop US soybeans are sole to China.
Wheat prices were strong yesterday. Lots of world news for the wheat traders to decipher. This year’s harvest in France is reported at 30% higher than last year and will come in at 33.40 million tonnes. This is still a bit below their 5 year average of 34.96 million tonnes. Production in Germany is up slightly this year at 21.58 million tonnes compared to 21.51 million tonnes last year. The harvest in Russia is behind schedule this year and they have raised their export prices over the last couple of weeks to somewhat ration exports in the short term.
On the trade side President Trump announced a deal with Japan that he says will increase US exports (including rice and other agricultural products) to Japan and implement a 15% tariff on Japanese imports. There are also reports that high level talks are to take place next week between US and Chinese officials. Although no new deal is expected next week they are expected to agree to an extension in their trade talks which will delay any new tariffs. This is seen as positive for our commodities even without the new deal in place and is most likely helping prices to be stronger this morning.
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
