Wednesday was a nice positive day for our markets. Harvest corn closed up 11 1/2, harvest soybeans closed up 20 3/4, harvest winter wheat closed up 15 and harvest spring wheat closed up 17 3/4. In the overnight trade all of our markets remain on the positive side. Oil closed $1.99 yesterday at $67.45 per barrel. It is weaker in trading this morning with it now valued at $67.26 per barrel. Our dollar started out yesterday morning at $0.733 US and has traded mostly higher since then. This morning it is currently valued at $0.736 US.
Soybean prices led our markets higher yesterday as they passed through their 20, 50 and 100 day moving averages. Prices were supported by soybean crush numbers from May. It came in at 203.67 million bushels which was a new record for the month of May. Last year they only crushed 191.6 million bushels of soybeans in May. Soybean meal stocks increased from 390 thousand tons in April up to 407 thousand tons. Soybean oil stocks decreased from 1.976 billion pounds at the end of April down to 1.875 billion pounds. This is the lowest level since 2015 when this data started to be tracked.
Weekly ethanol production in the US declined by 0.5% down to 1.076 million barrels per day last week. With blender demand up a bit and strong weekly exports ethanol stocks decreased 1.2% week over week to sit at 1.013 billion gallons. So far this marketing year corn for ethanol usage has totalled 4.080 billion bushels in the US. This is up 0.3% from the same period last year. To reach the USDA’s forecast of 5.50 billion bushels of corn usage the grind must use 0.7% more corn for the remaining 3 months of the marketing year.
Wheat prices also rallied yesterday with lots of different wheat news out there. It seems for this market it all depends on what the market wants to focus on in any given day. It is the lower production this year in China? How is the crop this year in the Black Sea Region, one day it is strong the next it is struggling. Production in France, South America, Australia, Canada and the US all take turns making the news and driving prices either way.
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
