Tuesday was a mixed day for our markets. Spot corn closed unchanged, spot soybeans closed up 11 3/4, spot winter wheat closed down 1/2 and spot spring wheat closed down 2 1/4. In the overnight trade corn and the wheat sector are positive with soybeans now on the negative side. Oil closed down $0.40 yesterday at $63.96 per barrel. It is stronger in trading this morning with it now valued at $65.17 per barrel. Our dollar started out yesterday morning at $0.737 US and then trended higher going up to $0.740 US in the overnight trading. It has pulled back just a bit this morning with it currently valued at $0.739 US.
The USDA released their monthly WASDE report yesterday and they did not bring out any major surprises. They did increase corn exports by 100,000 tonnes and directly decreased corn carryout stocks the same amount. They did not change the domestic balance sheet on the soybean front. However, they did increase soybean production in Brazil from 178 million tonnes up to 180 million tonnes. Expected corn production in Brazil was left unchanged as was production levels for both corn and soybeans in Argentina for this year. Really this report was mostly as expected and was not a market mover.
Soybeans were able to rally again yesterday even without any real support from the WASDE report. This was a report by a well-known crop consultant in Brazil that they are encountering some mold issues in the crop being harvested. The mold has come in some Northern growing regions in Brazil that encountered some excess moisture with more rains in the forecast. This is usually a concern every year with harvest and the extent of the mold is not yet known. However widespread it is or not the marketplace utilised this as a reason for yesterday’s rally. Let’s wait and see what can come up today to potentially drive prices higher.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
