Wednesday was a positive day for our markets. Spot corn closed up 3 1/2, spot soybeans closed up 7 3/4, spot winter wheat closed up 12 3/4 and spot spring wheat closed up 2 1/4. In the overnight trade all of our markets remain on the positive side. Oil closed up $0.82 yesterday at $63.21 per barrel. It is stronger again this morning with it now valued at $64.87 per barrel. Our dollar has traded between a low of $0.735 US and a high of $0.740 US over the last 24 hours. This morning it is currently valued at $0.738 US.
Weekly ethanol production in the US decreased last week by 0.5% from the previous week. It still came in at a strong 1.114 million barrels per day. If they kept this same production over the whole marketing year they would consume about 5.7 billion bushels of corn. Blender demand increased by 4% week over week with stocks declining by 1.3% down to 25.4 million barrels which is equivalent to 1.07 billion gallons. All in all a nice week for ethanol production which is therefore supportive for corn.
The corn market did gain some strength from President’s Trump verbal support of going to year round E15 blend in the US. However with this not occurring any time soon it was not enough support for this market to break through its 100 day moving average.
Crude oil prices have been rallying with President Trump bringing in some nervousness to this market with his threats again Iran. He has stated that they are basically ready to bomb Iran at any time. Whether this actually happens is yet to be seen but as we all know with President Trump one never knows what his next action will be.
Winter wheat futures led our markets higher yesterday with some short covering by managed money. This market has been getting some support by the recent cold weather in the US and consideration as to what damage the winter wheat crop would observe. Prices have slowly been increasing over the last month on the CBOT but not really enough to say this market was in a rally. We must remember that when (if) the war between Russia and Ukraine finally ends the wheat market will most likely take it as a negative. In theory it would open up the Black Sea region for increased production and exports which would be negative for world wheat prices.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
