Monday was a positive day for our markets. Spot corn closed up 6 3/4, spot soybeans closed up 16 3/4, harvest winter wheat closed up 6 and harvest spring wheat closed up 2. In the overnight trade corn and soybeans are mixed with the wheat sector now negative. Oil closed up $0.63 yesterday at $73.16 per barrel. It is weaker in trading this morning with it now trading at $71.69 per barrel. Our dollar started out yesterday morning at $0.680 US and then jumped higher going up to $0.695 US late in the afternoon. Since then it has pulled back just a bit with it currently valued this morning at $0.693 US.
The ongoing saga of the Trump Turmoil continues. Yesterday around noon President Trump agreed to postpone the tariffs against Mexico for one month to give them time to tighten up their border. Later in the day he also made an agreement with our Prime Minister to give us the same month to tighten up our border. What a day it was for the markets!
Sunday night when our markets opened all of them immediately went negative and traded around 10 cents down per bushel. Yesterday as the trading day progressed and the positive news of the postponements came out the markets rebounded. The volatility that occurred yesterday is something that we do not see that often in our markets.
Our dollar hit a new 20 year low on Sunday before bouncing back. Yesterday it jumped up when the Mexico agreement was made and then jumped up again when our agreement was announced. Today it is basically trading where it was last week when the markets were anticipating the tariffs.
One further thing today about tariffs is that the 10% tariff against China is going forward. In retaliation China has announced a 15% tariff against some specific items being imported from the US. It has also been reported that their two presidents are scheduled to talk over the next few days. Chinese officials had previously announced that they might be willing to negotiate a new trade agreement with the US based on the model utilised with the Phase I Agreement made when President Trump was previously in power.
Now quickly back to our markets. The wheat harvest in Australia has produced about 2 million more tonnes then expected which should be negative wheat prices. Reports out of Russia are conflicting about their wheat prospects this year and their government just took over the assets of their largest wheat exporting company. What this will mean for the wheat market going forward only time will tell!
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
