Elevator hours this week will depend on both the weather and if the combines are rolling.  Please call ahead if you are planning on coming after 5 pm.  

Wednesday was a mostly positive day for our markets.  Harvest corn closed up 7, spot soybeans closed up 6 3/4, spot winter wheat closed up 1 1/4 and spot spring wheat closed down 2 1/4.  No overnight trade as the markets are closed today for US Thanksgiving.  Oil closed up $0.70 yesterday at $58.65 per barrel.  It is stronger in trading again this morning with it now valued at $58.81 per barrel.  Our dollar had a low yesterday morning of $0.709 US and then trended higher going up to $0.713 US late in the trading day.  It has eased back just a bit this morning with it now currently valued at $0.712 US.

Corn prices closed yesterday above all of their 20, 50 and 100 day moving averages.  This market is trading likes it does not agree with the latest production numbers out of the USDA.  How much of a decrease in production the USDA will come up with in future monthly WASDE reports is open for discussion but the consensus is lower production numbers will be brought forward.  One potential big negative for this market is the rumour that harvested acres could be increased from previous reports.

Soybean prices also closed higher yesterday.  However as we noted in yesterday’s report they did not really respond to the latest purchases from China.  Surely this market is not getting fatigued already with the purchases?  It may just be that the marketplace is trading with the thought that China will not purchase the 12 million tonnes by the end of the year as was initially announced with the new ‘Trade Pact’.  Remember that soybeans from Brazil are currently less expensive to Chinese purchases and as such it is hard to imagine that they will continue to purchase US soybeans at this time.

Weekly ethanol production increased last week in the US by 2% up to 1.113 million barrels per day.  If they averaged this production over the whole year they would utilise 5.7 billion bushels of corn which is slightly higher than current USDA projections.  Even with the higher production last week ethanol stocks decreased by 1.5% down to 21.97 million gallons.  The ethanol sector continues to provide strong support to the corn market. 

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.