Thursday was a positive day for our markets. Harvest corn closed up 2 3/4, harvest soybeans closed up 8 1/4, spot winter wheat closed up 6 1/2 and spot spring wheat closed up 2. In the overnight trade corn is positive with soybeans and the wheat sector mixed. Oil closed down $0.26 yesterday at $62.37 per barrel. It is stronger in trading this morning with it now valued at $63.11 per barrel. Our dollar started out at yesterday morning at $0.720 US and has trended mostly higher since then. This morning it is currently valued at $0.723 US.
It was nice to see our markets trade positive yesterday with soybeans being the strongest. Not a lot happening in the marketplace ahead of the WASDE report that comes out at noon today. Of course the main focus today will be on how much of a decrease in yields the USDA pencils in for both corn and soybeans. A small decrease in each is widely expected with thoughts that a larger decrease will be required to really move the markets.
Current soybean export sales are reported at 34% behind last year in the US with of course China being absent from this market. This is a very similar situation that the US was in with the last trade war with China. Once the Phase 1 agreement was made of course the soybean balance sheet was adjusted very quickly. It seems like many traders are probably hoping the same thing will happen again this year.
When looking at the corn balance sheet we need to remember that with the August WASDE report the USDA made many significant changes. Not only did they increase the yield drastically but they increased both domestic demand and exports by large amounts. Many analysts thought these increases were too large and we could see a cut back in these numbers with today’s report. This is especially so if they decrease the projected production numbers by any significant amounts.
Friday’s thought: There isn’t an issue in this world that can’t be brought to an end by lawyers taking money from people until they give up!
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
