Yesterday was a mostly positive day for our markets. Spot corn closed up 5 1/2, spot soybeans closed up 9 1/2, harvest winter wheat closed unchanged and harvest spring wheat closed down 2 1/4. In the overnight trade all of our markets are on the negative side. Oil closed down $0.82 yesterday at $74.62 per barrel. It is stronger in trading this morning with it now trading at $75.01 per barrel. Our dollar started out yesterday morning at $0.694 US and has since then trended mostly higher going up to $0.698 US in the overnight trade. It has pulled back just a bit this morning with it currently valued at $0.698 US.
We experienced another volatile day in the markets yesterday. Corn traded in a 14 cent range with it closing about 5 cents off the high for the day. Soybeans traded within a large 28 cent range and closed 11 cents off the high for the day. The winter wheat market traded within a 10 cents range before closing unchanged.
This morning prices are lower and are being blamed on Argentina reducing export taxes on agricultural products including corn, soybeans and wheat. This will make their exports more attractive on the world market and is resulting in lower prices on the CBOT.
As the marketplace works through all of President Trump’s talks this of course brings volatility. The weather in South America is also a major factor currently. It continues to be a bit too wet in Brazil and this is keeping the soybean harvest at a slow pace which will also result in a delay in planting the Safrinha corn crop. In Argentina the rains have been spotty and not really enough to pull them out of their current dry spell. The current weather situation should be considered mostly favourable for prices at least in the short term.
Weekly ethanol production in the US increased last week by 0.4% to sit at 1.099 million barrels per day. Over a marketing year, such a rate of production would utilise 5.70 billion bushels of corn. Exports increased week over week by 44 thousand barrels per day to sit at 169 thousand. Last year at this time they only exported 121 thousand barrels per day.
Friday’s thought: He who blames others has a long way to go on his journey. He who blames himself is halfway there. He who blames no one has arrived!
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
