Thursday was a positive day for our markets. Harvest corn closed up 2, harvest soybeans closed up 8, harvest winter wheat closed up 1 and harvest spring wheat closed up 3/4. In the overnight trade all of our markets remain on the positive side. Oil closed up $0.52 yesterday at $62.79 per barrel. It is weaker in trading this morning with it now valued at $62.06 per barrel. Our dollar has traded in a narrow 20 basis point range over the last 24 hours between a low of $0.720 US and a high of $0.722 US. This morning it is at the low end of the range with it currently valued at $0.720 US.
Nearby soybean prices are being supported by higher prices in Brazil. With the harvest in Brazil reported earlier this week at 93% complete ample supply should be available. However, with increased demand from China they have seen an increase in basis values and this has made their soybeans more expensive then soybeans from the US in the world market. This should help US exporters to make sales to different markets other than China. If this does take place the USDA will need to increase export sales in their monthly WASDE reports and decrease carry out stocks.
Harvest soybeans are also trading stronger then might be expected with the current trade war between China and the US. The marketplace is playing this with the expectations that either the trade war will be resolved before harvest soybeans come to the market or that increased sales will be made to other destinations then China to keep the soybeans moving. Either way this market is being supported and we must remember that the US farmer is expected to plant much less soybean acres this year which will reduce supply.
Friday’s thought: Forgive others, not because they always deserve forgiveness, but because you always deserve peace in your life!
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
