Wednesday was a positive day but Friday was a negative day for our markets. On Friday spot corn closed down 1, spot soybeans closed down 4, spot winter wheat closed down 2 3/4 and spot spring wheat closed down 1. In the overnight trade all of our markets are still on the negative side. Oil closed down yesterday at $56.74 per barrel. It is much stronger this morning with it now valued at $57.95 per barrel. Our dollar has traded between a low of $0.730 US and a high of $0.733 US since the 23rd. This morning it is at the low end of the range with it currently valued at $0.730 US.
Last week was a mostly positive week for our markets. The corn market was up $3 per tonne for both the spot market and next year’s harvest. Soybeans were up $3 per tonne on the spot market and ended even for harvest 2026. Spring wheat was flat for this year and up $1 per tonne for next year’s harvest. The winter wheat market was up $4 per tonne across the board.
Even with the net positive week last week soybeans continue to trade below all of their 20, 50 and 100 day moving averages. With reduced trade levels during the holiday break the remaining traders are having a hard time to find reasons for this market to rally higher. Although China seems to be on their way to purchasing the 12 million tonne target talked about with the recent ‘Trade Pact’ between China and the US this is not enough to sustain a strong rally. The projected record crop coming from Brazil is the elephant hanging over this market.
The small rallies last week for both corn and winter wheat were supported by the continued bombings on Ukraine’s grain export infrastructure by Russia. This is reducing their ability to export at least in the short term. If this war is ended (current peace talks are supposedly taking place almost daily) it would put negative pressure on our markets as exports out of the Ukraine would flood to the market.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
