Thursday was a mixed day for our markets. Harvest corn closed down 5 1/2, harvest soybeans closed down 6 3/4, harvest winter wheat closed up 2 1/2 and harvest spring wheat closed up 1 1/2. In the overnight trade corn and soybeans remain on the negative side and the wheat sector remains positive. Oil closed down $1.32 yesterday at $78.28 per barrel. It is stronger in trading this morning with it now priced at $80.21. Our dollar had a high yesterday morning before lunch of $0.714 US and a low of $0.711 US shortly after lunch. It has stayed within that range since then with it currently valued this morning at $0.713 US.
Our markets all started positive yesterday and then pulled back as the trading day progressed. After a couple of very strong positive days it seems that the market will always slow down and pull back. Analysts will say that the market was due for a correction as the market gets ‘overbought’ and managed money will rebalance some of their funds. All in all it is a nice way to say what goes up must come back down!
Nothing has really changed between Russia and Ukraine. Bombings continued yesterday with reports out of Ukraine that Port of Odessa has been significantly damaged. Estimates that export capabilities have been decreased by up to 33% have been circulating. Over 80% of Ukraine’s grain exports flow through the Port of Odessa and as such continued damage to the infrastructure at the Port would most definitely hurt exports. This would in theory support higher world prices with less grain available on the world market.
The western and northern parts of the US Corn Belt remain hot and dry with the current weather forecast looking at some increased precipitation for the remaining growing areas. This could result with overall lower crop ratings next week as some of the corn will be under stress with other areas getting rain as the corn goes into the tassel stage. The heat dome is continuing in Europe and how much their corn crop will be reduced is yet to be seen.
Locally the winter wheat harvest has begun with reports of strong yield. Moisture levels remain elevated and as such the early harvested wheat will incur drying charges. Bring us a sample if you are unsure about your moisture levels. Other farmers are just now looking at a pre-harvest burndown on their wheat and as such we really do not expect full harvest for at least another week to 10 days.
Friday’s thought: If you focus on the hurt, you will continue to suffer. If you focus on the lesson, you will continue to grow.
Geoffrey Guy | 613-880-2707
Delores Seiter | 613-880-7458
