Thursday was a negative day for our markets. Spot corn closed down 3 1/2, spot soybeans closed down 5 1/2, harvest winter wheat closed down 13 and harvest spring wheat closed down 5 1/4. In the overnight trade all of our markets are on the positive side. Oil closed $1.81 yesterday at $96.35 per barrel. It is stronger this morning with it now trading at $98.30 per barrel. Our dollar started out yesterday morning at $0.727 US and has trended mostly lower since then. This morning it is currently valued at $0.725 US.
Soybeans pulled back yesterday with the marketplace looking for China to step up with some old or new (or both) purchases to support this market. Remember managed money has a very large long position (looking for prices to go up) and they must be liquidating some of this position as prices are pulling back. With the extremely large crop already harvested in Brazil, a large crop currently being harvested in Argentina and above average planting progress this year in the US the supply side of the marketplace has the potential to dominate going forward. This would result in lower prices. This market needs China to become an active player to drive prices higher.
The wheat market has now traded lower 5 of the last 7 trading days. It is looking like the highs might be in for this market with US wheat already overpriced on the world market. The US hard red winter wheat crop continues to struggle and it is looking like the US will be importing this type of wheat this year for milling purposes. Prices have pulled back below the 20 day moving average and are now lower just before the limit up day last week when the USDA provided support to this market.
President Trump has stated that talks with Iran and in the final stages. He has also threatened them with making a deal or the bombings will return. With crude oil prices remaining below the $100 level we can see that at least some traders seem to be agreeing with him.
We are hearing that the majority of the corn plantings have completed in our area and that soybean plantings are progressing well. However, we have heard of localised areas that are slower due to too much rain. Hopefully everybody is having a good planting week and can get lots completed before the rain showers come over the weekend. As we talk about planting we always need to keep our marketing hats on and that is where Target Orders can help us out. Let the orders work for you as your concentration is elsewhere. Give us a call anytime to discuss.
Friday’s thought: You must develop the ability to be disliked in order to free yourself from the prison of other people’s opinions!
Geoffrey Guy | 613-880-2707
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
