Wednesday was a mostly negative day for our markets. Spot corn closed up 6 1/4, spot soybeans closed down 15 3/4, harvest winter wheat closed down 3 and harvest spring wheat closed down 3. In the overnight trade corn and soybeans are now negative with the wheat sector on the positive side. Oil closed down $1.95 yesterday at $71.37 per barrel. It is weaker in trading again this morning with it now valued at $70.40 per barrel. Our dollar has traded between a low of $0.698 US and a high of $0.701 US over the last 24 hours. This morning it is currently valued at $0.700 US.
The soybean market pulled back yesterday with weather in South America once again in the news. Dry weather in Brazil has the combines rolling and the marketplace is looking for their harvest to catch up to their 5 year pace most likely over the next week. Last Friday they were at 15% harvested with the 5 year average being 21% complete. With new crop soybeans now available from Brazil we should note that their prices are much lower than the US for all the soybean products.
In Argentina current rain events are seen as most beneficial for their growing crops. Remember the USDA did decrease their soybean production estimate by 3 million tonnes on Tuesday however with the current favourable weather the marketplace is trading like no further cuts will be made.
Corn prices bucked the trend yesterday and stayed positive even without supportive data from the WASDE report on Tuesday. Ethanol production in the US was down 0.1% week over week to sit at 1.082 million barrels per day. Stock levels also decreased by 720,000 barrels to sit at 25.692 million barrels. With these production rates they are still utilising more corn then the USDA has projected. Somewhere down the line the USDA will have to increase corn usage for ethanol production.
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
