Wednesday was a negative day for our markets. Harvest corn closed down 5, harvest soybeans closed down 9 1/2, spot winter wheat closed down 6 1/4 and spot spring wheat closed down 1 1/4. In the overnight trade corn, soybeans and winter wheat are negative with spring wheat mixed. Oil closed down $1.62 yesterday at $63.97 per barrel. It is weaker in trading again this morning with it now valued at $62.95 per barrel. Our dollar started out yesterday morning at $0.724 US and then went up to $0.725 US before lunch. It has trended lower since then with it currently valued this morning at $0.723 US.
Our markets had a poor day yesterday with soybeans leading them lower. Even with the large drop (4%) in the soybeans good to excellent rating on Tuesday afternoon soybeans did not rally yesterday. Many analysts feel that the crop is getting smaller however without demand from China the US will have lots of soybeans to deal with on a logistics side. Without the usual fall exports to China the soybean crop is going to take up an unusually large amount of storage space that will not be available for corn this fall. With the large supply coming soybean prices have fallen back this week. Harvest is just around the corner and any decrease in the projected crop would most likely be minimal at this time.
The corn market behaved much like soybeans yesterday. The marketplace is trading as if the crop is already made and any decrease in yield in the US due to the current dry weather in parts of the Corn Belt will be minimal. Although export demand has been strong for US corn as current sales are about 50% ahead of last year’s level the US farmer is going to produce a record amount of corn and the marketplace will have to find a home for it. As mentioned above storage space will most likely be at a premium in much of the US and this will help to push prices lower.
Wheat prices are also being pulled lower with the supply side dominating this market. Strong production is expected this year from all over the globe. Our Canadian farmers are projected to have more wheat production then last year. Strong production is also expected to come from the US, European Union, Argentina, Australia, Ukraine and of course Russia. We all need to remember that Russia will lower the price of their wheat exports to make a sale and this is keeping a lid on world prices.
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
