Wednesday was another positive day for our markets. Harvest corn closed up 6 1/4, harvest soybeans closed up 5 1/2, harvest winter wheat closed up 6 3/4 and harvest spring wheat closed up 13 1/4. In the overnight trade all of our markets remain on the positive side. Oil closed down $0.92 yesterday at $68.58 per barrel. It is weaker again this morning with it now priced at $67.58. Our dollar has traded between a low of $0.703 US and a high of $0.705 US over the last 24 hours with it currently valued this morning at $0.704 US.
The corn market has bounced back from new contract lows in the nearby market since the USDA reports were released on Tuesday. The only real supportive data released for corn prices was that current stock levels were at a 7 year high not a 38 year high that was projected before the Stocks Report was released. This was achieved as the USDA manipulated the demand side of the balance sheet with increased feed usage in the US. Whether this actually occurs only time will tell.
China has recently started to purchase some new crop purchases of soybeans from the US. Unfortunately these purchases have been relatively small in size and have not been large enough to drive prices. The marketplace will need to see Chinese purchasers being very aggressive for this to support prices going forward.
As we mentioned yesterday the wheat market was the most supported with the USDA reports on Tuesday. The decreased acreage and smaller yield this yield are both very supportive to this market. World stock levels are currently the elephant in the room that will keep a lid on prices. Russia just announced that it is decreasing the price of wheat that it is exporting. Their harvest is underway for the winter wheat and as always they manipulate prices to keep their wheat attractive on world markets.
The markets are closed tomorrow for the July 4th holiday in the US. Our office will be open.
Geoffrey Guy | 613-880-2707
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
