Friday was a negative day for our markets. Harvest corn closed down 4 1/4, harvest soybeans closed down 6 1/2, harvest winter wheat closed down 9 1/2 and harvest spring wheat closed down 18. In the overnight trade corn, soybeans and winter wheat are positive with spring wheat mixed. Oil closed up $1.88 on Friday at $68.45 per barrel. It is stronger in trading again this morning with it now valued at $69.43 per barrel. Our dollar traded between a low of $0.729 US and a high of $0.732 US on Friday with it closing out at $0.731 US. With some choppy trading in the overnight session it is once again back at $0.731 US this morning.
The USDA released their monthly WASDE report on Friday. The numbers reported were generally slightly bullish however the market reacted to the downside. With generally good growing weather in the US the marketplace decided that the weather was more important than this report.
In the report they increased old crop corn exports by 100 million bushels but they also decreased domestic usage by 75 million bushels. The report did include lower carryout stocks for both this year and next with higher world stock numbers mostly due to increased production in South America.
For soybeans they did not change the carryout number for this year. They decreased exports for next year, increased domestic crush (soybean oil demand for biodiesel), decreased production estimates and ultimately slightly increased ending stocks. We should also note that world stocks are expected to increase next year to a new record.
They massaged their domestic production of wheat to end up with a slight increase however ending stocks were decreased. World wheat stocks are projected to decline next year even with Black Sea production (Russia) increasing back up.
It is nice to see this morning that prices are back on the positive side. Maybe the marketplace has had some time to look at the report from Friday and decide that it was supportive prices after all.
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
Tony Mitchell | 613-227-2525
Office | 613-489-0956
