Monday was another mostly positive day for our markets. Spot corn closed up 5 1/2, spot soybeans closed up 19 1/2, harvest winter wheat closed up 3 1/4 and harvest spring wheat closed down 4 1/2. In the overnight trade all of our markets are on the negative side. Oil closed up $4.69 yesterday at $106.62 per barrel. It is weaker in trading this morning with it now trading at $105.03 per barrel. Our dollar has stayed in a very narrow trading range over the last 24 hours, between a low of $0.734 US and a high of $0.735 US. This morning it is at the high end of the range with it currently valued at $0.735 US.
Soybean prices led our markets higher yesterday and were supported by sentiment that the scheduled meeting next week between President Trump and President Xi is still going ahead. The market is looking for assurances of increased soybean purchases from China which would make the meeting a success at least for this market. We should also note that soybean oil has closed higher for 8 straight trading days with it supporting crush premiums in the US that is near all-time highs. The high price of crude oil continues to support the vegetable oil market.
Corn prices also closed higher yesterday after spending part of the day on the negative side. This market has now traded higher for 8 of the last 10 trading days. The trend is our friend as prices are also supported by the high price of crude oil.
Yesterday the USDA released their weekly Crop Progress Report. Corn plantings increased by 13% week over week to sit at 38% planted. This compares favourably with last year’s 38% planted at this time of the year and the 5 year average of 34% planted.
Soybeans plantings increased 10% week over week to sit at 33% planted. This compares to only 28% planted at this time last year and the 5 year average of 23%.
Spring wheat plantings increased by 13% week over week to sit at 32% planted. This compares to 42% planted at this time last year and the 5 year average of 35% planted.
The good to excellent rating for their winter wheat crop increased 1% week over week to sit at 31%. Last year at this time this crop had a 51% good to excellent rating.
This report should be considered bearish for corn and soybeans with the fast planting pace of each crop. For the wheat sector the report is slightly bullish with spring wheat plantings slowing and the small good to excellent rating increase for winter wheat.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
