Thursday was another mixed day for our markets. Harvest corn closed down 2 1/2, harvest soybeans closed down 1/4, harvest winter wheat closed up 3 3/4 and harvest spring wheat closed up 13 1/2. In the overnight trade corn and the wheat sector are positive with soybeans negative. Oil closed down $0.90 yesterday at $60.94 per barrel. It is stronger in trading this morning with it now valued at $61.63 per barrel. Our dollar had both a low of $0.722 US and a high of $0.725 US before noon yesterday. It has traded within those limits since then with it currently valued this morning at $0.724 US.
Spring wheat led the wheat complex higher yesterday. Prices closed above the 100 day moving average for the first time in a couple of months. It seems that the marketplace is starting to come to grips with the likelihood of a smaller crop this year. Again this was highlighted by the initial low good to excellent rating of only 45% for this crop reported by the USDA earlier this week.
The supply side of the corn market took over this week with prices falling lower. Last week corn was up and this week the market has taken it all back. With the crop getting larger in South America and the US crop being planted in a timely manner under mostly favourable growing conditions the marketplace has to be concerned with where all this corn will be utilised. As such we have had a negative week
Weekly ethanol production in the US increased 2% last week coming in at 1.056 million barrels per day. Blender demand also increased 2% week over week however exports were lower. The net result was a decrease in ethanol stocks of 2.7% down to 24.28 million barrels. This is a good sign for continued strong production numbers going forward.
Friday’s thought: Doing nothing is very hard to do. You never know when you are finished!
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
