Friday was a negative day for our markets. Harvest corn closed down 7 1/4, harvest soybeans closed down 4, harvest winter wheat closed down 13 1/2 and harvest spring wheat also closed down 13 1/2. In the overnight trade corn is negative with soybeans and the wheat sector now on the positive side. Oil closed down $1.64 on Friday at $87.36 per barrel. It is stronger this morning with it now trading at $90.66 per barrel. Our dollar traded between a low of $0.724 US and a high of $0.726 US on Friday with it closing out right in the middle at $0.725 US. After rallying a bit in the overnight trade it has pulled back this morning and is currently valued at $0.723 US.
Our markets ended lower on Friday with funds liquidating a portion of their long positions (looking for prices to go up) with the general thought that the peace process was gaining some traction. Nearby corn prices have fallen below the $4.50 per bushel level on the CBOT that we talked about last week as a potential support level. Negative price pressure has also come from less expensive corn then current US offers by Argentina on the world market and the strong prospects of the current US corn crop. How the peace process works out in the short term will most likely greatly affect this market.
Soybeans also pulled back on Friday even though soybean oil hit a new high on the nearby market. Managed money was also liquidating a portion of their long position as without some new purchases from China US soybeans are too expensive on the world market in order for exports to drive a rally in prices.
Of course wheat also joined in on Friday on the negative side. Although it is well known that the yield potential for the HRW wheat crop in the US is greatly reduced this year the strong world supply of wheat is keeping a price lid on this market.
Last week was a negative week for our markets. Spot corn closed down $6 per tonne with this year’s harvest down $5 per tonne and harvest 2027 down $2 per tonne. Soybeans were our strongest commodity with them down only $4 per tonne on the spot market, $1 per tonne for this year’s harvest and $3 per tonne for next year’s harvest. Winter wheat was down $13 per tonne for both the spot market and this year’s harvest. They were also down $11 per tonne for next year’s harvest. Spring wheat was down $9 per tonne on the spot market, $8 per tonne for this year’s harvest and $1 per tonne for next year.
Our markets will be watching for a few items this week and will respond accordingly. The Weekly Crop Progress from the USDA will be in the news later today and we should expect continued strong planting progress for both corn and soybeans. How the peace process works out between Iran and the US will also be closely watched. Of course weather for the growing US crops will also be watched. Finally, eyes will be on China with market watchers waiting for them to join in on the demand side for our commodities.
Geoffrey Guy | 613-880-2707
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
