Thursday was a mixed day for our markets. Spot corn closed up 2 1/4, spot soybeans closed down 1/2, spot winter wheat closed up 7 3/4 and spot spring wheat closed up 10. In the overnight trade all of our markets are back on the positive side. Oil closed down $1.26 yesterday at $59.63 per barrel. It is stronger in trading this morning with it now sitting at $60.35 per barrel. Our dollar has traded between a low of $0.723 US and a high of $0.726 US over the last 24 hours. This morning it is sitting near the higher end of the range with it currently valued at $0.726 US.
The soybean market was positive most of the day, but cooled off by the end of the trade and only lost 1/2 cent for the day. Wheat led the market in gains with cold, frigid weather forecasted for this weekend in most of the winter wheat growing areas. Corn was up slightly, but not a whole lot of news to trade on yesterday.
A new soybean sale was announced yesterday morning for 13M bu to unknown destination which helped support the bean market earlier in the trade day. The market is still sitting in a short positive 120,000 contracts of wheat, demand is just not strong enough to offset the large world supply. Otherwise a slow day.
So far China has bought 407M bu less US beans than this time last year. And Brazil is sitting with a 70 cent cheaper bean price than the US, factor in a cheaper freight rate from Brazil puts their price at almost $1 cheaper than the US. This coupled with an expected record large and early soybean crop in Brazil makes it hard to see the support in the US soybean market get too much higher.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
