Monday was a mostly negative day for our markets. Harvest corn closed down 5 1/2, harvest soybeans closed down 1/4 with spot soybeans up 3 1/2, harvest winter wheat closed down 14 and harvest spring wheat closed down 9 1/2. In the overnight trade corn and soybeans are negative with the wheat sector now positive. Oil closed down $0.97 yesterday at $62.05 per barrel. It is weaker in trading again this morning with it now valued at $61.03 per barrel. Our dollar had a low yesterday morning of $0.721 US and a high late in the trading day of $0.724 US. This morning it is currently valued at $0.722 US.
Soybean futures were struggling yesterday with reports out of China that they are not currently engaged with any trade talks with the US. This is contrary to what was coming out of the White House. Later in the day the market was supported as it was announced that a trade deal between the US and India was progressing well. This helped to support the soybean oil market which supported soybean prices.
Winter wheat prices pulled back yesterday down to new contract lows on the nearby market. Speculative funds continue to hold a near record large short position (looking for prices to go lower) and the market keeps rewarding this investment. This morning prices have bounced back even with the negative for prices crop report yesterday (more on that below). Once again it just seems that the wheat market does what the wheat market does and it does not always make sense.
The USDA released their Weekly Crop Progress Report yesterday. Corn plantings increased 12% week over week to sit at 24% complete. This compare favourably to last year’s 25% and the 5 year average of 22% complete. They also report that 5% of the crop is now emerged. This is up from 2% last week and is right in line with last year’s 6% and the 5 year average of 4% emergence for this time of the year.
Soybean plantings increased 10% week over week to sit at 18% planted. This is ahead of both last year’s 17% planted and the 5 year average of only 12% planted at this time of the year.
Spring wheat plantings increased 13% week over week to sit at 30% complete. This is right in line with last year’s 31% complete but remains ahead of the 5 year average of only 21% complete.
The good to excellent rating for their winter wheat crop increased 4% week over week to sit at 49%. This is the same rating the crop had last year at this time. They also report that 27% of this crop is now headed. This compares with 28% at this time last year and the 5 year average of only 22%.
This report should be considered slightly bearish prices for corn, soybeans and spring wheat due to continued fast planting pace. The increased good to excellent rating for their winter wheat crop also makes it bearish for this crop.
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
