Wednesday was a mostly positive day for our markets. Harvest corn closed up 1 3/4, harvest soybeans closed down 7, harvest winter wheat closed up 5 1/4 and harvest spring wheat closed up 3. In the overnight trade corn is mixed, soybeans and spring wheat are negative and winter wheat is positive. Oil closed down $2.21 yesterday at $58.21 per barrel. It is weaker in trading again this morning with it now valued at $56.83 per barrel. Our dollar had a low yesterday morning of $0.722 US and a high in the afternoon of $0.726 US. It has traded within that range since then with it currently valued this morning at $0.724 US.
Crude oil prices have pulled back to an over 4 year low. With the slow down reported this week in the US economy the demand side is expected to slow down for oil usage not only in the US but overall world demand. This is occurring the same time that the OPEC + nations are increasing production. Increased supply with decreased demand is a perfect recipe for lower prices.
Lower crude oil prices directly affect the renewable energy sector. This put downward pressure yesterday on soybean oil which resulted in lower soybean prices. They were able to stay above their 100 day moving average but did fall below their 200 day moving average.
Weekly ethanol production in the US was up 1% week over week resulting in 1.040 million barrels per day. Blender demand was down 1.5% over the week however exports rebounded from 75,000 barrels per day the previous week up to 141,000 barrels per day. As noted above the lower price of crude oil will also affect ethanol prices going forward as ethanol producers will be looking to pay less for their corn used in the process.
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
