Friday was another mixed day for our markets. Spot corn closed down 6 3/4, spot soybeans closed down 6, harvest winter wheat closed down 3 1/4 and harvest spring wheat closed up 1/2. In the overnight trade all of our markets are on the negative side. Oil closed down $2.08 on Friday at $70.40 per barrel. It is stronger in trading this morning with it now valued at $70.55 per barrel. Our dollar traded between a low of $0.702 US and a high of $0.706 US on Friday with it closing out at $0.703 US. It is up just a bit this morning with it currently valued at $0.704 US.
Last week was mostly a small gain for our commodities with it coming more from local basis improvements then on the markets. Sport corn closed down $3 per tonne with harvest corn up $2 per tonne. Soybeans were up $1 per tonne for old crop and $2 per tonne for new crop. Spring wheat was the leader this week with it being up $2 per tonne for old crop and $5 per tonne for new crop. Winter wheat was flat for old crop and up only $1 per tonne for this year’s harvest.
With the recent favourable weather in the Mato Grasso region of Brazil farmers have almost caught up to the 5 year average in their soybean harvest. It was released on Friday that they currently have 67% of their soybeans harvested which is only 3% behind the 5 year average. For their safrinha corn crop plantings they are at 66% complete which is ahead of their 5 year average. Two weeks ago they were way behind the averages and this was a source of support for both corn and soybean prices. This support has most definitely been lost at this time.
Nearby corn prices on the CBOT were only able to close above $5 per bushel on Tuesday last week. They did close out the week at $4.91 per bushel which is their 20 day moving average price. It seems that the marketplace is struggling with that $5 per bushel level however when we look at the May contract it did trade above the $5 per bushel mark for the week. It has just pulled back to that level this morning as the trading week is beginning.
It is a disappointing start to the trading week this morning. It seems that the large soybean crop being harvested in Brazil is finally making it to the markets and thoughts that the US will greatly increase corn acreage this year are also a negative. The USDA is holding their annual Ag Outlook Forum later this week which will definitely bring more into focus what the potential acreage swing can be this year in the US.
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
