Grains Matter Chatter – Episode 229
Tuesday was a mostly positive day for our markets. Harvest corn closed up 7 1/4, spot soybeans closed up 4 3/4, spot winter wheat closed up 3 and spot spring wheat closed up 3 1/4. In the overnight trade corn and the wheat sector are still positive with soybeans back on the negative side. Oil closed up $0.22 yesterday at $68.59 per barrel. It is stronger in trading again this morning with it now valued at $69.57 per barrel. Our dollar has traded in a very narrow 10 basis point range over the last 24 hours. It has stayed between a low of $0.705 US and a high of $0.706 US. This morning it is currently valued at $0.705 US.
The USDA released their monthly WASDE report yesterday and they did amend the demand side of the corn balance sheet as expected. They actually decreased projected carryout stocks for the current year more then what was expected. Corn exports were increased by 150 million bushels and the ethanol grind was increased by 50 million bushels. The net result was the projected carryout decreased down to 1.728 billion bushels which is actually lower than last year’s 1.760 billion bushels. This report increased corn demand up to 15.19 billion bushels for the marketing year which is a new record.
Further on the corn side was a decrease in global stocks due to increased global demand and some decreased production in the EU, Mexico and Indonesia. They did decrease imports into China by 2 million tonnes down to 14 million tonnes. Brazil has recently looked after these shipments to China. In a different report I read that Chinese corn production will decrease this year from 297.01 million tonnes down to 293.84 million tonnes.
The soybean balance sheet was unchanged in the report. We should also note that the USDA did not increase soybean production from Brazil for this year. They left it at 169.0 million tonnes which was somewhat of a surprise as many private forecasts are in the mid 170’s. Soybean production in Argentina was increased by 1.0 million tonnes up to 52.0 million tonnes.
Yesterday I reported on winter wheat acres for Ontario for this year. The article I sourced had winter wheat acres reported incorrectly. Today they have put out a new article with correct data from Stats Canada. They came in at 1.183 million acres planted this fall which is an increase of 17.3% from the 1.008 million acres that were planted last year.
If you would like to talk about the markets or price some of your crop for the future or in store, please reach out to us via phone or email to info@northgowergrains.com. Prices quoted herein are for product at our elevator.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Office | 613-489-0956
