Monday, December 9, 2024, 6:55 am

Grains Matter Chatter – Episode 229

Friday was a mixed day for our markets.  Harvest corn closed up 5, spot soybeans closed unchanged, spot winter wheat closed down 1 and spot spring wheat closed down 2.  In the overnight trade all of our markets have made it to the positive side.  Oil closed down $1.10 on Friday at $67.30 per barrel.  It is stronger in trading this morning with it now valued at $68.12 per barrel.  Our dollar traded between a low of $0.706 US and a high of $0.713 US on Friday with it closing out at the low end of the range.  It has bounced back up a bit in the overnight trading with it currently valued this morning at $0.708 US. 

Last week was a mixed week for our markets.  Spot corn closed up $2 per tonne with next year’s harvest down $1 per tonne.  Soybeans were the strongest with spot soybeans up $4 per tonne but next year’s harvest was down $1 per tonne.  Spring wheat was the weakest with the spot price down $4 per tonne and next year down $3 per tonne.  Winter wheat was up $1 per tonne on the spot market but down $4 per tonne for next year.

Our dollar took a big dive on Friday with weaker than expected jobs data released by Statistics Canada.  Our unemployment rate jumped up by 0.3% up to 6.8%.  One possible positive outcome from this is that it increases the chances of a 50 basis point interest rate decrease instead of only 25 basis point decrease on Wednesday when the Bank of Canada issues its final rate decision of the year.

Corn prices rallied some last week and closed above the 50 day moving average.  The marketplace is anticipating that the USDA will increase corn demand with tomorrow’s WASDE report.  Corn exports out of the US have been stronger than original projections for this marketing year and the ethanol grind continues to utilise more corn then originally projected.  Of course the big negative for tomorrow’s report could be increased production coming from South America based on the favourable growing weather they have been experiencing.