Thursday was another mostly negative day for our markets. Harvest corn closed down 2, harvest soybeans closed up 3, harvest winter wheat closed down 5 and harvest spring wheat closed down 2 1/2. In the overnight trade all of our markets are starting out the day on the positive side. Oil closed up $1.84 yesterday at $59.91 per barrel. It is stronger in trading again this morning with it now valued at $60.98 per barrel. Our dollar started out yesterday morning at $0.721 US and then trended lower going down to $0.717 US late in the afternoon. It has bounced up some since then with it currently valued this morning at $0.719 US.
Wheat prices continued lower yesterday with favourable growing conditions occurring for much of the US winter wheat growing regions. Rain has come to some dryer areas and this is resulting in thoughts that the good to excellent ratings will increase again next Monday. The Russian wheat production estimate has been increased from 82.5 million tonnes up to 83.8 million tonnes. This is also due to recent rains in the Black Sea region. These rains will be supporting the wheat crop in Ukraine. All in all the supply side is dominating this market and prices continue to falter.
Corn prices have closed lower for each of the four trading days this week. The fast planting pace for the US crop and the favourable weather forecast that will allow the planters to keep moving is a big negative for this market. Remember quicker planting generally means more acres and a better chance for higher yields.
Statistics Canada reported yesterday that Canadian corn stocks as of March 31 came in at 7.197 million tonnes. This was down 13% from last year and is the lowest since 2015. Exports have been strong this year and imports have also decreased. The combination of the two factors led to the decrease in stocks. Soybean stocks came in at 2.393 million tonnes which was an increase of 11% from last year. Looks like the exporters will have to do a better job with soybeans.
The USDA is releasing their Monthly WASDE report on Monday. It is widely expected they will increase corn exports and decrease corn carryout numbers for this year. The counter to this is that they could also increase carryout numbers for next year with the increased acres being planted this spring in the US. How the market will balance all of this out we will have to wait and see.
Friday’s thought: Life is not about waiting for the storm to pass, but learning to dance in the rain.
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
