Thursday was a negative day for our markets. Spot corn closed down 4 1/4, spot soybeans closed down 23 3/4, spot winter wheat closed down 9 1/2 and spot spring wheat closed down 6. In the overnight trade corn has remained flat, soybeans and spring wheat up a bit and winter wheat down a bit. Oil increased 0.8% yesterday and closed at $79.30 per barrel. It is weaker in trading this morning with it now valued at $78.58 per barrel. Our dollar started out yesterday morning at $0.697 US and then trended slightly higher hitting a high of $0.698 US for the day. It has eased back just a bit in the overnight trading with it currently valued this morning at $0.694 US.
The markets have seen a nice rally since the USDA WASDE report last week, but some welcome rains in Argentina, after a dry spell, was enough to turn the markets negative yesterday. Soybeans and soybean meal was the biggest losers. There are more crucial rains in the forecast over the next several days in Argentina which will likely continue to support the negative trend.
Despite more export sales announced yesterday for soybean oil the upward trend ended yesterday, with the Nopa crush report reported that December was a record for crushing pushing the ending stocks for Decemeber higher, which turned the market to the negative side. US soybean exports are starting to slide with the large crop in Brazil and Argentina anticipated. Brazil’s beans are also discounted to US beans.
On Monday Trump will take office in the US, we will have to wait and see if this will impact the markets further or if it is already priced in.
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
