Thursday was a positive day for our markets. Spot corn closed up 3 1/4, spot soybeans closed up 2 1/4, harvest winter wheat closed up 4 1/4 and harvest spring wheat closed up 4 1/4. In the overnight trade all of our markets remain on the positive side. Oil closed down $0.08 yesterday at $71.29 per barrel. It is stronger in trading this morning with it now valued at $71.94 per barrel. Our dollar started out yesterday morning at $0.699 US and then trended higher for the day going up to $0.706 US in the overnight trade. It has eased back just a bit this morning with it currently valued at $0.705 US.
It was nice to see the markets close positive yesterday after spending some time during the morning on the negative side. Our dollar reached highs not seen since early December as the US currency weakened against most other currencies. Remember the stronger dollar is a negative for local basis levels. President Trump signed an executive order yesterday that will have their commerce department look at all other countries tariffs and come back with reciprocal tariffs that the US can implement to level the playing field.
Weather in South America seems to be the major item this week. Yesterday crop ratings came out for Argentina and they deteriorated from the previous week for both corn and soybeans. It seems that the rains this week were too late for the current crop ratings. With widespread downpours occurring yesterday you would expect this trend to change for next week.
Soybean meal has fallen for 7 consecutive trading days. We should note that with the cuts the USDA made to Argentina’s soybean production with this week’s WASDE report they did not decrease soybean meal or soybean oil output from Argentina. They are projecting fewer soybeans will be available for export and that the crush facilities in Argentina will be fully supplied.
Weekly export data was released yesterday in the US for our commodities. Both corn and soybean exports remain ahead of the USDA’s projections. This could lead to some revised numbers from the USDA in future WASDE reports.
Friday’s thought: Life is good. Keep it Simple!
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
