Wednesday was a mostly negative day for our markets. Harvest corn closed up 1 1/4, harvest soybeans closed down 13 3/4, harvest winter wheat closed down 6 and harvest spring wheat closed down 1/4. In the overnight trade corn is just positive with soybeans and the wheat sector mixed. Oil closed up $0.79 yesterday at $70.00 per barrel. It is weaker in trading this morning with it now valued at $69.60 per barrel. Our dollar started out yesterday morning at $0.725 US and has trended lower since then. This morning it is currently valued at $0.722 US. This is its lowest valued since the end of May.
Harvest soybeans closed below the $10 per bushel mark on the CBOT yesterday for the first time since right after President Trump brought out the major tariff talk back in April. With a non-threatening weather forecast for the next two weeks the marketplace is trading like they expect a large crop this year in the US. With the ample supplies available on the world stage from the record crop this year in Brazil the supply side is dominating and prices are grinding lower.
Weekly ethanol production in the US increased 2% week over week to come in at 1.096 million barrels per day last week. Both blender demand and exports were up for the week. Net result was an increase of 1.1% in ethanol stocks up to 24.72 million barrels which is equivalent to 1.038 billion gallons. If the ethanol production was to sustain the above rate they would utilise 5.75 billion bushels of corn over a marketing year which is slightly higher then USDA forecasts.
Yesterday we talked about how the soybean crush is being driven in the US by the demand for soybean oil. The June crush came in at 185.7 million bushels which is a new record for June and it is a 6% increase year over year. Marketing year to date the total crush stands at 1.919 billion bushels compared to 1.837 billion bushels from a year ago.
Interest rate hold announcements were made yesterday by both the Bank of Canada and the US Federal Reserve. Market analysts are still predicting that each institution will likely decrease interest rates twice later in this calendar year.
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
