The elevator is open 7 am to 7 pm going forward (weather permitting) including weekends.

Thursday was another positive day for our markets.  Harvest corn closed up 5, harvest soybeans closed up 10, spot winter wheat closed up 9 1/4 and spot spring wheat closed up 10 1/4.  In the overnight trade all of our markets have fallen back on the negative side.  Oil closed up $3.29 yesterday at $61.79 per barrel.  It is stronger in trading again this morning with it now valued at $61.99 per barrel.  Our dollar had a high yesterday morning of $0.715 US and has since then trended lower.  This morning it is currently valued at $0.713 US.

It seems like every day we talk about what is happening between China and the US.  Both sides have confirmed that high level diplomats are meeting this weekend in Malaysia to discuss a trade deal.  They are going to have up to 3 days of meetings.  This is supposed to set up a deal that Presidents Trump and Xi would finalize next week at the APEC summit in South Korea.  Our markets responded positive to these announcements yesterday with a nice rally in prices.

Also on the trade front President Trump has said that all trade talks with Canada have been put on hold.  He is unhappy with the negotiating tactics from our side.  We should note that earlier this week I read an article about how a trade deal between our two countries would be finalized next week in South Korea.  I guess this is now not on the table.

Some extreme rain events over the last month in China have analysts projecting a reduced crop for all three of commodities in China this year.  Up to 20 inches of rain in September and early October has resulted in some crops being spoiled in the field and not worth harvesting.  This seems to be more a concern in the corn market however China has massive reserves of corn (close to 200 million tonnes) and these reserves could be drawn upon.  For soybeans the amount of damage is not really being reported on.  For wheat it is delaying the planting of their winter wheat crop which in theory will result in less yield potential for next year.

One final talk about China today is that rumours went around yesterday that a Chinese Buyer was active in purchasing both US soybeans and wheat.  With the government shutdown continuing in the US no daily export reports are available and as such rumours like this can exist without them being proved correct or incorrect.  We should note that China has been an active purchaser of US commodities during previous government shutdowns as they like to make purchases on the quiet side so that it does not affect market price.  It seems highly unlikely to occur at this time base on the current trade talks.

The higher price of crude oil over the last couple of days is supportive for the renewable fuel market in the US.  This has supported both ethanol prices for the corn market and soybean oil prices in the soybean sector.  As we mentioned yesterday the current higher price of crude oil is a direct result of actions taken by the US Government.

Locally the harvest continues to progress.  Soybean acres left in the field are getting smaller and smaller with the corn harvest well underway.  On a positive note our farmers are generally happier with their corn yields then what they found with their soybeans.  We will be open all weekend with what is looking like some good harvest weather.

Friday’s thought: You cannot fix someone who does not want to be fixed.  But you can ruin your life trying!

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.