Wednesday was a mostly negative day for our markets. Harvest corn closed down 1/2, harvest soybeans closed up 2 3/4, harvest winter wheat closed down 1 3/4 and harvest spring wheat closed down 6 1/2. In the overnight trade corn is mixed with soybeans and the wheat sector now positive. Oil closed down $1.02 yesterday at $58.07 per barrel. It is stronger in trading this morning with it now valued at $59.03 per barrel. Our dollar had a high yesterday just after lunch of $0.726 US and has trended lower since then. This morning it is currently valued at $0.721 US.
All of our markets started out positive yesterday but retreated as the day went on. The news that the US and China trade representatives are meeting in Switzerland this week was not enough to keep the positive vibe in the market. Although this is a big step in getting together it is possible that reality set in with thoughts that a comprehensive trade agreement will take many months to negotiate and our markets pulled back.
Weekly ethanol grind in the US declined 2% week over week resulting in 1.02 million barrels per day production. Blender demand was down a corresponding 2% week over week and export demand decreased by 10% down to 129,000 barrels per day.
President Trump and Prime Minister Carney met yesterday to try and smooth things out between our two countries. Nothing really concrete came out of the meeting that the public could see. Hopefully it is a step towards rationalizing the trading relationship between our two countries.
The US Federal Reserve stayed the course yesterday with no interest rate decrease. They also indicated that chance of future decreases is getting smaller and only minimal decreases should be expected this year. Concerns over inflation and their overall economy were talked about as reasons.
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
