Wednesday was a negative day for our markets. Harvest corn closed down 1/2, harvest soybeans closed down 2 3/4, harvest winter wheat closed down 9 and harvest spring wheat closed down 3 3/4. In the overnight trade all of our markets have returned to the positive side. Oil closed down $0.96 yesterday at $65.25 per barrel. It is stronger in trading this morning with it now valued at $65.89 per barrel. Our dollar started out yesterday morning at $0.736 US and then went down to $0.734 US before noon. It has traded within this small range since then with it currently valued this morning at $0.734 US.
After announcing the trade deal with Japan on Monday President Trump also announced new deals with Indonesia and the Philippines yesterday. Soybean prices rallied yesterday morning with support coming from this as soybean exports to these two countries should increase with the new deals. However, prices pulled back as the day progressed with the supply side dominating once again. The prospect of the strong US crop this year and the lack of a trade deal with China helped to pull the market back.
Weekly ethanol production in the US decreased last week by 1% down to 1.078 million barrels per day. Blender demand increased 4% week over week with exports increasing from 94,000 barrels per day last week up to 108,000 barrels per day this week.
The spring wheat tour is taking place across North Dakota and they are finding strong yields. The first day results have projected yields at 50 bushels per acre. This is well above the 5 year average of 45.1 bushels per acre for the same area. These results are somewhat surprising given the current crop ratings for this crop that are not indicating that strong of a yield. This of course is putting some negative pressure on spring wheat prices.
It is nice to see prices positive this morning across the board. Maybe the market is rewarding the trade deals announced this week or possibly they are just due for a positive day.
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
