Our office is closed today (Monday) for the Victoria Day Holiday. The markets remain open and as such you can call me anytime at 613-880-2707 to make a contract.
Friday was a mostly negative day for our markets. Harvest corn closed down 3 1/4, harvest soybeans closed up 1/4, harvest winter wheat closed down 7 3/4 and harvest spring wheat closed down 5 3/4. In the overnight trade all of our markets are back on the positive side. Oil closed up $0.35 on Friday at $61.97 per barrel. It is weaker in trading this morning with it now valued at $61.53 per barrel. Our dollar traded between a low of $0.715 US and a high of $0.717 US on Friday with it closing out right in the middle at $0.716 US. It is a bit stronger this morning with it currently valued at $0.717 US.
Last week was a mostly negative week for our markets. Spot corn closed down $10 per tonne with this year’s harvest down $4 per tonne and next year down $5 per tonne. Soybeans were up $1 per tonne on the spot market, $4 per tonne for this year’s harvest and $2 per tonne for next year. HRS wheat was down $14 per tonne for this year and $13 per tonne for next year. Winter wheat was down $6 per tonne for this year and $4 per tonne for next year.
The corn market is getting pulled down by the fast planting pace and the increased acres this year in the US. We should also note the increased production from South America that we wrote about on Friday is also a negative for prices going forward. With beneficial rains forecasted for this week across much of the Corn Belt it is hard to see any short term rally coming in prices. Remember this negative turn in prices is in spite of the continued strong export sales out of the US for old crop supplies.
Wheat prices pulled back on Friday with the Kansas wheat tour projecting yields at 53 bushels per acre. This is 3 bushels higher than the current USDA projection and 10 bushels over their 5 year average. On the world front the wheat crop in China and also Northern Europe is currently under stress due to dry growing conditions. This should be providing some support to wheat prices but it seems the bears are fully in control and are jumping on any news that will drive prices lower.
It is nice to see prices higher across the board this morning even with most likely some positive for production and negative for prices news to come this afternoon. The USDA releases their weekly Crop Progress Report later today and we should expect to see that the planting progress is remaining ahead of their 5 year averages and also that the crop rating for their winter wheat crop continues its recent positive trend.
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
