Merry Christmas!

Grains Matter Chatter – Episode 231

Monday was another mostly positive day for our markets.  Harvest corn closed up 1 1/2, spot soybeans closed down 5, spot winter wheat closed up 7 1/2 and spot spring wheat closed up 5 1/4.  In the overnight trade corn, soybeans and spring wheat are positive with winter wheat now on the negative side.  Oil closed down $0.22 yesterday at $69.24 per barrel.  It is stronger in trading this morning with it now valued at $69.54 per barrel.  Our dollar has traded between a low of $0.693 US and a high of $0.696 US over the last 24 hours.  This morning it is currently valued at $0.694 US.

The US Government won a legal trade appeal against Mexico that would have seen Mexico ban gmo corn from being imported from the US.  This was brought up a couple of years ago and Mexico has continued to purchase the gmo corn form the US as this trade dispute worked its way through the system.  Mexico has said they will abide by the ruling and as such this should not affect the markets very much.

Speculative funds currently hold a long position (looking for prices to go up) in the corn market.  They see what the USDA has reported on, the demand side of the market being stronger than originally projected and this has most definitely helped prices to rally to their current levels.  Whether the market can keep going with a strong crop coming from South America is yet to be seen.

With the projected record crop of soybeans now growing in Brazil their soybeans will once again be dominating the world export market.  FOB prices for February and March are already lower then soybeans from the US.  Speculative funds are holding a short position (looking for prices to go down) as the see the supply side dominating going forward.

The markets close early today and will reopen on Boxing Day for another short trading day.  Our office will be closed that day however if you want to complete some pricing please call me on my cell phone and I will be happy to look after you.

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.