Geoff is off, please contact Delores, Bob, Tony or the office for any marketing needs. Contact info below.
Tuesday was a positive day for all our markets except spring wheat which ended the day just below even. Harvest corn closed up 2 3/4, harvest soybeans closed up 11 1/2, harvest winter wheat closed up 2 1/4 and harvest spring wheat closed down 1/4. In the overnight trade everything is on the negative side, except winter wheat. Oil closed down $0.44 yesterday at $62.73 per barrel. It is slightly stronger in trading this morning with it now valued at $62.78 per barrel. Our dollar had a high of $0.727 US in the last 24 hours and a low of $0.726 US it is currently valued at $0.726 US.
Soybeans continued their rally yesterday, gaining another 11 1/2, after the slightly bullish USDA WASDE report released at noon on Tuesday. The whole soybean complex followed suit. The big drop in soybean acres is what made Tuesday’s report bullish for soybeans, the yield is still estimated to be a record large one. As of this morning soybeans have lost basically all of yesterday’s gain in the overnight.
The USDA also only made a minor decrease to soybean exports in Tuesdays reoport. China is still missing from the table; there are currently no soybean sales on the books to China for new crop beans. Rumor is China is covered until end of October but will be looking to purchase more soybeans for the November to January period, but so far have not given any indication they’re interested in purchasing US soybeans. US soybeans are currently sitting at a big discount at a $1.09bu to Brazilian beans. However, US soybeans also comes with a 23% tariff which shows that China is playing the political game as they continue to purchase South American soybeans over lower priced US soybeans.
Tuesday’s report was so bearish for corn, increasing yield estimates by 7.8bpa to 188.8bpa and increasing planted acres by 2.1mil acres. So, yesterday’s small gain in the corn market is mostly likely a “dead cat bounce” in a bearish market. And we can see that corn is negative in the overnight and this morning. No real indication that it will trending higher in the near future. The good news for corn, is demand remains strong with more export sales announced yesterday to Mexico.
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
