Wednesday was a negative day for our markets. Harvest corn closed down 2 3/4, harvest soybeans closed down 6 1/4, spot winter wheat closed down 5 1/4 and spot spring wheat closed down 4 3/4. In the overnight trade corn and soybeans are positive with the wheat sector still negative. Oil closed up $1.04 yesterday at $63.67 per barrel. It is weaker in trading this morning with it now valued at $62.92 per barrel. Our dollar had a high yesterday morning before noon of $0.723 US and has trended lower since then. This morning it is currently valued at $0.720 US.
The soybean market led our commodities lower yesterday. They closed just above their 50-day moving average. It is nice to see this morning that they have rallied above this level. The marketplace is looking for a decrease in the yield projection for this year however expectations are for a decrease of no more then 1.0 bushels per acre. It is looking like a larger decrease will be needed to drive any significant price increase. Remember the lack of purchases by China this year is the elephant in the room that is keeping a lid on prices. Without any exports to China the US will have to find many new trade partners to take their soybeans.
The corn market is also waiting to see what the USDA will be coming forward with on Friday with the monthly WASDE report. Trade expectations are for a decrease of 2.6 bushels per acre on the yield side. This would bring the total crop down from roughly 16.7 billion bushels to 16.5 billion bushels. The decrease of this small amount would most likely not be enough to drive prices any significant amount. It is going to take a bullish surprise on Friday to give this market any rallying strength.
This might be a nice time to take a look at your own marketing position for this harvest. There is still downside risk in both markets and if you are looking to sell around harvest it may be prudent to take some risk off the table before Friday’s report. We should also note that prices for next year do currently have a premium from this year. We are seeing some customers take advantage of this premium and are starting to lock in prices for next year. Give us a call anytime if you would like to discuss any of these possibilities.
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
