Thursday was a positive day for our markets. Harvest corn closed up 4, harvest soybeans closed up 1/2, spot winter wheat closed up 4 3/4 and spot spring wheat closed up 1/2. In the overnight trade corn and spring wheat are positive with soybeans and winter wheat negative. Oil closed up $0.45 yesterday at $64.60 per barrel. It is weaker in trading this morning with it now valued at $64.34 per barrel. Our dollar has traded between a low of $0.725 US and a high of $0.728 US over the last 24 hours. This morning it is currently valued at $0.727 US.
Our markets were mostly trading negative yesterday until late in the trading day when soybeans and the wheat sector joined corn on the positive side. Did anything really significant occur to drive our markets back on the positive side? The short answer is no! It probably was some fund repositioning before the end of the month. All of our commodities are changing from the September trading month to November and December. It is possible that today being the last trading day of the month we could see some more volatility as funds roll their positions to the new trading months.
Soybean prices have been unable to rally with the expected large crop coming this fall in the US. Although acres were down with the August WASDE report remember they did increase the yield projection. As we have talked about before with the lack of Chinese purchases for the new crop it is hard to see any real rally occurring in the soybean market. There are reports out of China that they have purchased all of their soybean import needs to the end of November already and are also releasing some of their soybean reserves to meet domestic demand. Currently export sales for new crop soybeans out of the US are running 28% behind last year’s pace. This is showing that other than China the US exporter has been able to find markets for their product. It is unlikely however that they can replace average Chinese purchases with other sales.
Friday’s thought: Hope your long weekend isn’t short on fun. Enjoy the break!
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
