Monday was a mixed day for our markets. Harvest corn closed down 1/2, harvest soybeans closed down 9 3/4, harvest winter wheat closed up 7 3/4 and harvest spring wheat closed up 9 1/2. In the overnight trade corn and the wheat sector are positive with soybeans mixed. Oil closed up $2.12 yesterday at $71.48 per barrel. With some choppy trade it is weaker in trading this morning with it now valued at $71.46 per barrel. Our dollar had a high yesterday morning of $0.697 US and then trended lower going down to $0.694 US last night in the overnight trading. It has bounced around this morning but it once again currently valued at $0.695 US.
The USDA released their reports yesterday and did through a few curve balls at the markets. Corn acres for this year came in at 95.326 million which is up 5% from last year and about 900,000 above the average pre-report trade guess. This would be most corn planted in the US since 2013 when the US Farmers planted 95.365 million acres. Definitely bearish numbers for the market to play with going forward.
For soybeans acreage is decreased by 4% from last year down to 87.1 million acres. This is about 300,000 acres less than the average trade estimate. The decreased acres should make this report overall supportive for prices going forward.
Total wheat acres came in at 45.35 million. This is down from last year’s 46.1 million acres and is the second smallest acreage since records began in 1919. Winter wheat acres were down 1% from last year to sit at 33.315 million. Spring wheat came in at 10.02 million acres which is down 6% from last year. Durum wheat acres also decreased 2% from last year to come in at 2.02 million. Just like with soybeans this report should be considered supportive for prices going forward.
For the stocks report both wheat and soybean stock levels came in slightly higher than the pre-report average trade estimate which made this report slightly bearish for both these markets. For corn it came in right in line with the estimate but this was slightly bullish for corn. Reason being for this is that it confirms usage of corn in the US for the 1st quarter of the crop marketing year at 3.92 billion bushels. This is the 2nd most ever on record. With the increased acres this year this market is going to require continued strong usage to support prices going forward.
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
