Tuesday was a mostly positive day for our markets. Spot corn closed up 6 1/4, spot soybeans closed down 2 3/4, harvest winter wheat closed up 28 and harvest spring wheat closed up 18. In the overnight trade all of our markets are on the positive side. Oil closed up $3.56 yesterday at $99.93 per barrel. It is stronger again this morning with it now trading at $103.13 per barrel. With some very choppy movements our dollar has traded between a low of $0.730 US and a high of $0.732 US over the last 24 hours. This morning it is right in the middle of the range with it currently valued at $0.731 US.
Wheat prices soared yesterday and was supported by the continued weak good to excellent rating reported on Monday afternoon. There is also concern about the wheat crop this year in Australia. This concern is related both to dryness and fertilizer availability and costs. How these concerns will end up affecting planted acres and final production are mostly speculation now. With SRW wheat prices now north of $300 this is a great time to market some of this year’s production. I want to congratulate our customers yesterday that had target orders hit in this market. Give us a call anytime to discuss a marketing strategy for this year’s wheat crop.
New crop corn has traded higher now for 8 straight trading days. No real large movements but a positive trend for sure. Prices were helped yesterday by the strength in the wheat market. Strong crude oil prices are most definitely making ethanol more attractive in the fuel market and this is also helping the corn market. With the December CBOT now approaching $5 per bushel this is the next area of technical resistance.
Lots of talk about what is occurring between Iran and the US over the Strait of Hormuz. Just like most other days we will have to sit back and see what actually does take place.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
