Thursday was another negative day for our markets. Harvest corn closed down 1 1/4, harvest soybeans closed down 20 1/4, harvest winter wheat closed down 2 3/4 and harvest spring wheat closed down 1 1/2. In the overnight trade all of our markets remain on the negative side. Oil closed down $4.76 yesterday at $66.95 per barrel. It is weaker in trading again this morning with it now valued at $62.13 per barrel. Our dollar started out yesterday morning at $0.708 US and then went up to $0.713 US before lunch. It has trended lower since then with it currently valued this morning at $0.705 US.
The initial fallout from President Trumps Liberation Day was negative for our markets. Soybeans were the big loser yesterday and again this morning. With total tariffs against China now sitting at 54% the marketplace is just waiting for them to announce what they are going to respond with against the US. This is pulling soybeans down hard as speculation is that tariffs on soybean imports from the US will part of their response.
The outside markets all responded negatively to the new round of tariffs. Stock markets are much weaker with many analysts predicting that this will push the US into a recession and possibly a world recession.
Crude oil prices have plunged with thoughts that demand will decrease significantly. This is also coming at a time that the OPEC nations are increasing production. The double whammy of increased supply when demand most likely will be decreasing has hit prices hard.
Truly everybody is waiting to see how all the different countries will respond to the new round of tariffs. The markets initial reaction has been negative and it is hard to see how it could be positive going forward. Just how negative it ends up being is really the biggest question at this time.
Friday’s thought: We are all a little broken. But the last time I checked, broken crayons still colour the same!
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
