As the local soybean harvest has begun our elevator will be open on both Saturday and Sunday this weekend from 7 am to 5 pm. 

Thursday was another negative day for our markets.  Harvest corn closed down 3, harvest soybeans closed down 6 1/4, spot winter wheat closed down 4 and spot spring wheat closed down 2 1/4.  In the overnight trade corn and spring wheat are mixed, soybeans are positive and winter wheat is negative.  Oil closed down $0.48 yesterday at $63.57 per barrel.  It is weaker again in the overnight trading with it now valued at $63.37 per barrel.  Our dollar started out at $0.726 US yesterday morning and has trended mostly lower since then.  This morning it is currently valued at $0.724 US.

Our markets were negative again yesterday with the supply side dominating trade.  Weekly export numbers were released in the US with China still absent from the soybean market.  President Trump and President Xi are scheduled to have a telephone conversation at 9 pm tonight at which time they are expected to finalize the TikTok deal for American users.  Nothing truly is expected for the agricultural markets today other than a possible agreement to meet in person between the two leaders at a future date.

CONAB in Brazil released their initial crop estimates for the coming crop year.  Soybean acres are expected to increase by 3.7% which will bring their production total up to 177.67 million tonnes.  This compares to 171.47 million tonnes over the last year.  Soybean exports are projected to increase to 112.12 million tonnes up from 106.66 million tonnes this year.  Corn production is actually projected to decrease by 1.0% down to 138.28 million tonnes.  Exports however are expected to increase from 40.0 million tonnes up to 46.5 million tonnes.  These strong production estimates were already being talked about in the marketplace and should not affect row crop prices in the short term.

Data out of China shows that corn imports have decreased 92.9% from last year and are at only 880 thousand tonnes this year.  Wheat imports have also decreased 75% year over year and stand at 2.6 million tonnes.  It was not that many years ago that China imported up to 20 million tonnes of these commodities.  They have worked at being more self-sufficient with their production and demand has decreased this year with a smaller hog herd.  We cannot count on imports into China to drive prices higher on the CBOT! 

Friday’s thought: May your troubles be less, your blessings be more, and may nothing but happiness, come through your door!  Have a great weekend!   

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.