Thursday was a positive day for our markets. Harvest corn closed up 3 1/4, harvest soybeans closed up 1 2/2, harvest winter wheat closed up 1 and harvest spring wheat closed up 2 1/2. In the overnight trade corn, soybeans and winter wheat are now negative with spring wheat still positive. Oil closed up $0.78 yesterday at $66.03 per barrel. It is stronger in trading this again morning with it now valued at $66.26 per barrel. Our dollar started out yesterday morning at $0.735 US and has trended lower since then. This morning it is currently valued at $0.731 US.
The USDA announced an export sale of new crop corn yesterday to China. This helped to support the corn market with thoughts that maybe this is related to a possible trade deal between the US and China. Unfortunately it was corrected later in the day to state that the sale was made to South Korea. Any sale is still good for the market however the thoughts that this sale was related to a trade deal were wiped out and any momentum that this had brought to the market was also erased.
New crop soybean sales in the US continue to struggle with the sales level well below their 10 year average. This market needs a trade deal made with China to get the sales going. We should note that China continues to purchase increased amounts of both soybean and soybean meal from Brazil and China. Further to this they are taking steps to decrease their hog herd as they have an oversupply of pork and this has depressed prices for their farmers. Interestingly enough the Chinese Government looks to be supporting their farm sector more than the rest of the population that is purchasing the pork.
The Wheat Quality Council finished its tour in North Dakota yesterday and they are projecting spring wheat yields at 49.0 bushels per acre. This is down from last year’s record 54.5 bushels per acre. This should be somewhat supportive for spring wheat prices going forward.
Friday’s thought: Brave doesn’t always roar. Sometimes, it quietly keeps walking through the storm!
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
Tony Mitchell | 613-227-2525
Office | 613-489-0956
