Thursday was a positive day for our markets. Harvest corn closed up 2 1/4, spot soybeans closed up 2 1/4, spot winter wheat closed up 4 and spot spring wheat closed up 1. In the overnight trade corn, soybeans and winter wheat are negative with spring wheat still on the positive side. Oil closed down $0.86 yesterday at $57.60 per barrel. It is weaker in trading again this morning with it now valued at $57.51 per barrel. Our dollar started out yesterday morning at $0.725 US and then went up to $0.727 US before noon. It has traded within that range since then with it currently valued this morning at the top end of the range at $0.727 US. The stronger dollar is putting pressure on local basis levels to fall.
Our markets were all stronger yesterday on light trading. There was another small sale of soybeans made to China but not enough to move the markets. It probably was a day of managed money moving some money around.
Soybeans are down almost $1 per bushel on the CBOT over the last month. With data releases still being caught up by the US it was reported yesterday that managed money had almost a record long position (looking for prices to go up) in the soybean market at the middle of November. It is speculated that they have liquidated some of this position and taken significant losses since that time. With China being slow in US purchases and strong growing weather in South America it may be hard for this market to sustain any short term rally.
The corn market continues to be range bound with exports keeping prices from pulling back. In what way prices ending up going for this market will likely depend on the January WASDE report. If no other major news comes until that time we could see much of the same in this market going forward. We should note that new crop supply from Ukraine is reaching the export markets now and this also should help to keep a lid on prices.
Friday’s thought: Stop being afraid of what could go wrong and stop being excited about what could go right!
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
