Thursday was a mixed day for our markets. Harvest corn closed down 3/4, harvest soybeans closed up 13 3/4, harvest winter wheat closed 3 3/4 and harvest spring wheat closed up 3/4. In the overnight trade all of our markets are on the negative side. Oil closed up $0.27 yesterday at $69.92 per barrel. It is weaker in trading this morning with it now valued at $69.82 per barrel. Our dollar had a high yesterday morning of $0.701 US and a low shortly after of $0.698 US. With some choppy trading since then it is back at the low end of the range this morning with it currently valued at $0.698 US.
Soybean prices rallied yesterday and were supported by strong exports of soybean oil. The US has already exported more soybean oil this year than the USDA had projected as exports for the whole marketing year. Domestic demand for soybean oil is also increasing for the biodiesel market and should become more in demand after the tariffs likely hit next year. Tariffs on used cooking oil from China and canola oil imports from Canada will become more expensive for biodiesel production.
Winter wheat prices hit a new nearby low on the CBOT yesterday. This came after a very disappointing weekly export data on the wheat side. Exports are very low even with US SRW wheat being the least expensive on the world market. The possibility of increased exports out of the Black Sea area could be causing some weakness in this market and the downtrend in corn prices is also helping to pull wheat lower. We should also note that speculative funds are continuing to increase their short position as they are betting on prices going lower.
Do not forget that next week has a high potential to be a very large week for price direction for our commodities. Both the USDA’s Quarterly Stocks Report and the Planting Intentions Report on Monday can greatly influence the market. Plus whatever the US administration does with new tariffs and their implementation could have a massive influence on the markets. This has created much uncertainty at this time and uncertainty in the markets usually results in volatility. How much volatility and how large the price swings will be is yet to be seen!
Friday’s thought: Do not focus on the things that make you sad! There are so many things that can make you happy!
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
