Yesterday was another negative day for our markets. Harvest corn closed down 1 1/2, harvest soybeans closed down 2, harvest winter wheat closed down 7 1/4 and harvest spring wheat closed down 2 1/2. In the overnight trade all of our markets have bounced back to the positive side. Oil closed up $0.32 yesterday at $65.24 per barrel. It is stronger in trading again this morning with it now valued at $65.43 per barrel. Our dollar had a low yesterday morning of $0.731 US and a high around noon of $0.734 US. It has traded within that range since then with it currently valued this morning at $0.732 US.
Our markets started out positive yesterday but turned negative as the day progressed. The trend remains negative for all of our commodities with the supply side dominating headlines.
Soybean meal hit a new nearby low and has traded lower for 8 of the 9 last trading days. With soybean crush rates remaining strong in the US this market has an oversupply issue and lower prices have been the result. It was also reported yesterday that China has made a purchase of soybean meal from Argentina for the first time. If this shipment goes well we could easily see more purchases going forward. Remember that Argentina historically is the largest soybean meal exporter in the world and China is the largest importer.
Wheat prices also continued lower yesterday with the harvest starting in Europe and Russia. Milling wheat in France has been lower 12 of the last 13 trading days and has reached lows hit back in 2022. Production estimates out of Russia have been increasing and they are currently being aggressive selling new crop wheat at low prices. The current harvest in the US is also putting pressure on global wheat prices.
Of course corn prices have continued lower also with harvest futures at a new low. Earlier this week new production estimates out of Brazil has their current crop coming in at record levels. This with the mostly favourable growing conditions currently being experienced by the US Farmer is helping to pull prices lower.
Friday’s thought: Happiness is not about getting what you want all the time. It is about loving what you have and being grateful for it!
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
