Thursday was a mixed day for our markets. Harvest corn closed up 1 1/2, harvest soybeans closed down 6 1/2, harvest winter wheat closed down 1/2 and harvest spring wheat closed up 1/2. In the overnight trade corn is positive with soybeans and the wheat sector negative. Oil closed down $0.74 yesterday at $69.26 per barrel. It is weaker in trading again this morning with it now valued at $68.78 per barrel. Our dollar had a high yesterday around noon of $0.723 US and then trended lower going down to $0.720 US in the overnight trade. It has bounced back up a bit this morning with it currently valued at $0.721 US.
Soybean prices have closed lower for 5 consecutive days. As we continue to talk about how the supply side of this market is now dominating something needs to break on the demand side to turn it around. Of course the analysts keep looking for a new trade deal between China and the US that just has not been completed yet. They have reportedly agreed to keep the negotiations going and to extend the current tariff arrangements until further notice. There are rumours that a trade deal is close but only rumours.
Unfortunately Canada and the US have not been able to reach a new deal and President Trump has increased the flat tariff on our exports from 25% to 35%. Hopefully something will be worked out very soon between our two countries that will once again normalise our relationship. Big words with it hard to imagine what will be normal going forward and how it may affect our agricultural markets.
Wheat prices just continue to grind lower. A new crop marketing year low was set for both winter and spring wheat this week. Nothing is happening in the global market to drive prices. Reports will show that production is down just a bit in the EU but exports should remain consistent. Production is up in France but the crop has some quality concerns. Argentina has almost their entire fall seeded crop now planted under mostly ideal conditions. Production is expected to decrease this year slightly in Ukraine. Russia continues to flood the world market with low price wheat even though they supposedly had some production issues this year. Bottom line is that the bears remain in control of this market and the trend remains negative.
Friday’s thought: Have a happy long weekend! Do what makes you smile and be happy!
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
