Grains Matter Chatter – Episode 230
Friday was a negative day for our markets. Harvest corn closed down 1 1/2, spot soybeans closed down 7 1/2, spot winter wheat closed down 6 1/4 and spot spring wheat closed down 4. In the overnight trade all of our markets are back on the positive side. Oil closed up $1.27 on Friday at $71.29 per barrel. It is weaker in trading this morning with it now valued at $70.48 per barrel. Our dollar traded between a low of $0.702 US and a high of $0.704 US on Friday with it closing out at $0.703 US. It is down a bit this morning with it currently valued at $0.702 US.
Last week was a flat but mostly negative week for our markets. Harvest corn closed down $1 per tonne with next year’s price remaining at even. Spot soybeans closed down $3 per tonne with next year’s price also coming out at even. Spring wheat was up $1 per tonne for both this year and next year. In comparison winter wheat was down $1 per tonne for both this year and next year’s crop.
Corn prices rallied prior to the USDA report last Tuesday. This report brought forward some bullish data for the corn market with confirmation of higher exports out of the US and a higher grind of corn for ethanol production. This resulted in a slightly lower projected carryout amount of corn for this marketing year than last year. Unfortunately within one day of the report being filed the market traded with the thought that the supportive news was old news and it looked for something new to trade with.
The big item right now is weather in South America and how it has been and is projected to be mostly supportive crop growth. Although the USDA did not increase projected production out of Brazil last week many private analysts have already increased their projections to sit at higher numbers then the USDA. The market is trading with the thought that the supply side will continue to dominate with the large crop growing in South America. This will continue unless we see a sustained widespread weather issue come forward.
It is nice to see all of our markets starting the week on the positive side. Hopefully they all can find some reasons to stay that way as the week progresses.