Thursday was another negative day for our markets. Spot corn closed down 1, spot soybeans closed down 2 1/2, harvest winter wheat closed down 5 and harvest spring wheat closed down 16 3/4. In the overnight trade all or our markets are hovering around even. Oil closed down $0.27 yesterday at $94.81 per barrel. It is weaker again this morning with it now trading at $94.63 per barrel. Our dollar started out yesterday morning at $0.734 US and then went down to $0.732 US in the afternoon. It has bounced back a bit since then with it currently valued this morning at $0.733 US.
Prices pulled back again yesterday but there were a few bright spots. Both corn and soybeans closed well off their low for the days and rallied almost back to the positive side as the trading day progressed. Maybe it is possible that the entire war premium has been removed from these markets. Any changes to the current (supposedly) positive negotiations to end the war against Iran will be directly reflected in our markets.
Soybeans were able to close above their 20 day moving average yesterday as there is still optimism that China may purchase more old crop soybeans next week when the two Presidents meet. Whether this optimism is valid or not we will soon find out as the meeting is now scheduled for next Thursday in China.
The wheat market seems to be taking turns this week with winter wheat down hard one day and spring wheat down hard the next day. Widespread precipitation came to the US HRW wheat growing region and this was a negative for prices. Remember production will be down this year in the US but the world market remains very well supplied.
Weekly ethanol production in the US increased last week in the US by just less than 1% from the previous week to come in at 1.017 million barrels per day. Both blender demand and exports decreased slightly for the week. The net result was an increase in ethanol stocks of 0.5% up to 26 million barrels. Although ethanol production has increased from last year it has not increased as much as the USDA had projected for this year. In order to utilise as much corn as the USDA projected the corn ethanol production will have to increase for the rest of the current marketing year.
It is great to see tractors are in the field throughout Eastern Ontario with corn and soybeans being planted. Hopefully with some warmer weather coming everybody will be able to make lots of progress over the next week. Remember to stay safe and do not forget to celebrate ‘Mother’s Day’ on Friday.
Friday’s thought: An old wise gentlemen once said: “It is better to be going down the hill then to be under the hill!”
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
