Corn harvest has started again.  We are back to harvest hours today and the weekend weather permitting.  If in doubt please call the office, 613-489-0956, or Ronald at 613-880-7456.

Thursday was a mixed day for our markets.  Harvest corn closed up 6 1/4, spot soybeans closed up 13 1/4, spot winter wheat closed down 1/4 and spot spring wheat closed unchanged.  In the overnight trade corn and spring wheat are mixed with soybeans and winter wheat on the positive side.  Oil closed up $0.20 yesterday at $58.69 per barrel.  It is stronger in trading again this morning with it now valued at $59.64 per barrel.  Our dollar started out yesterday morning at $0.715 US and has trended mostly lower since then.  This morning it is currently valued at $0.712 US.

With another positive trading day for corn and soybeans it seems that the marketplace is looking for significant decreases in production estimates for this year.  The market has been trading with the lack of government data since the September WASDE report.

The corn yield is expected to be decreased from 186 bushels back in September down to the 183–184 bushels per acre range.  With a decrease to this level the US would still have a carryout for this marketing year of over 2 billion bushels.   This is considered a very large number which would normally keep the corn market from any major rallies.

Soybean production is expected to come in around 53 bushels per acre.  The bigger item for the soybean market maybe how the USDA deals with the lack of Chinese purchases so far this year and how this affects their carryout stocks number.

There is a strong chance that the market will react violently either way to the numbers released today by the USDA.  I am thinking that we should get ready for a wild ride when the report gets released.  As we have written about every day this week target orders will allow any producer the opportunity to take advantage of a short term positive price swing.

Weekly ethanol production in the US dropped last week by 4% from the record high level the previous week.  Expectations were only for a 2% dip so these numbers are somewhat of a negative for the corn market.  Production came in at 1.075 million barrels per day.  Exports were strong for the week with blender demand down 1%.  Net result was a drawdown on ethanol stock of 1.9% to come in at 22.22 million barrels.  We should still note that US ethanol production is up 1.2% year over year which is slightly behind previous USDA projections of an increase of 3% for the year.

Friday’s thought: Happiness comes a lot easier when you stop complaining about your problems and start being grateful for all the problems you do not have!

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.