Tuesday was a mostly negative day for our markets. Harvest corn closed up 2 3/4, harvest soybeans closed down 13 1/2, spot winter wheat closed down 6 and spot spring wheat closed down 5 3/4. In the overnight trade corn and the wheat sector are negative with soybeans flat. Oil closed up $1.58 yesterday at $65.59 per barrel. It is weaker in trading this morning with it now valued at $64.33 per barrel. Our dollar had both a daily low of $0.724 US and a high of $0.726 US yesterday before noon. It has traded within that range since then with it currently valued this morning at $0.725 US.
Soybean prices pulled back yesterday as a leading Chinese trade representative left the US on Friday without any significant progress made on a trade deal between the US and China. Further to this the next potential meeting between the two governments is not going to occur until late October or early November. Even if a deal is made at that time it would be too late for the fall shipments of soybeans to China from the US. The lack of this deal is a major negative for soybean prices going forward.
The wheat market is pressured this morning with reports out late yesterday of increased production this year in both Australia and Russia. Wheat export potential for these countries rose which is lowering the global price. This is also putting pressure on corn as feed wheat is very competitively priced currently to replace corn is feed rations around the world.
The USDA released their weekly Crop Progress Report yesterday. The good to excellent rating for their corn crop decreased 2% week over week to sit at 69%. Last year at this time it had a rating of 65% good to excellent. They also reported that 58% of their corn is now dented. This is up from 44% last week and compares with last year at this time of 58% dented and the 5 year average of 60%.
For their soybean crop the good to excellent rating decreased 4% week over week to sit at 65%. Last year at this time it also had a 65% good to excellent rating. They also reported that 11% of this crop is now dropping leaves. This is up from 4% last week and compares to 12% at this time last year and the 5 year average of 10%.
They no longer allocate a good to excellent rating for their spring wheat crop with harvest progressing. It is reported that 72% of this crop is now harvested. This is up from 53% last week and compares to 67% at this time last year and the 5 year average of 71%.
This report should be bullish for both corn and soybeans with the decreased good to excellent rating. For spring wheat the report is neutral. With our markets not responding bullish this morning it seems that the marketplace is trading like the majority of the yield is already made and they are not concerned with the decreased crop ratings.
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
