Thursday was a mixed day for our markets. Harvest corn closed up 1 with spot corn down 3 1/4, harvest soybeans closed up 5 3/4, harvest winter wheat closed up 1/4 and harvest spring wheat closed down 1 3/4. In the overnight trade all of our markets are on the positive side. Oil closed up $1.03 yesterday at $59.24 per barrel. It is weaker in trading this morning with it now valued at $58.66 per barrel. Our dollar has traded between a low of $0.722 US and a high of $0.725 US over the last 24 hours. This morning it is currently valued at $0.723 US.
It was just a couple of weeks ago that US soybeans were less expensive on the world market then soybeans from Brazil. This advantage has now turned the other way with the harvest in Brazil completed. US soybean exports this year are currently 13% ahead of last year’s pace and as we have said a few times the market is still looking for the USDA to increase export totals for this marketing year in a monthly WASDE report. The soybean market definitely has some mixed signals this year with the decreased acres in the US being planted very fast and of course the tariff war between China and the US. How it will all work out is yet to be seen.
On the supportive side for soybeans was that the crush amount in March came in at 205.9 million bushels. This was a new record for March and was up from the 189.0 million bushels crushed in February. Strong soybean oil demand helped to support this market.
Wheat prices continue to trend lower with the speculative funds being rewarded. They are holding a large short position betting that prices will keep going lower. With the current low prices US winter wheat is now competitive in the world market (outside of any tariffs) and this should help to increase export sales which of course would be beneficial for prices. If the market could rally the speculative funds would most likely liquidate some of their position and this would further help to feed any rally.
Friday’s thought: The best feeling of happiness is when you are happy because you have made someone else 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
