Monday was a positive day for our markets. Spot corn closed up 6, spot soybeans closed up 27 3/4, spot winter wheat closed up 14 1/4 and spot spring wheat closed up 9 1/4. In the overnight trade all of our markets have fallen back on the negative side. Oil closed up $2.25 yesterday at $78.82 per barrel. It is weaker in trading this morning with it now valued at $78.42 per barrel. Our dollar started out yesterday morning at $0.693 US and then trended higher going up to $0.697 US late in the day. It has eased back just a bit in the overnight trading with it currently valued this morning at $0.696 US.
Our markets rallied yesterday as they worked through all the numbers released with the WASDE report on Friday. Soybeans surged past their 20, 50 and 100 day moving averages and are back near the high hit early last fall in the nearby month. The marketplace seems to be concerned with the cut in yearend stocks in the soybean market with the continued strong domestic demand in the US. After two strong days the pullback this morning is not a real surprise.
Soybean oil prices also surged on Monday after the US Government released guidance on their Clean Fuel Tax Credit program. They will no longer be giving credits for imported used cooking oil utilised to make biodiesel. This should result in less of this product being imported and more soybean oil being used for biodiesel production in the US. We should note that the USDA actually decreased the usage of soybean oil for biodiesel in the report on Friday. However this was before the new regulation was announced excluding the imported used cooking oils.
Even with the large decrease in the average corn yield announced on Friday the US Farmer still produced a new record average. With only the small rally in the corn market it looks like the marketplace was surprised but not overwhelmed with the new corn balance sheet.
With the Trump Turmoil just around the corner it was reported that China imported a record amount of soybeans in 2024. They imported 105.03 million tonnes which was an increase of 6.5% from 2023. Reasons for the increase include the low price on the CBOT, strong crush margins in China and buyers stocking up before the potential trade war starts with the US.
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
