Monday was a negative day for our markets. Harvest corn closed down 5 1/2, harvest soybeans closed down 9 3/4, harvest winter wheat closed down 4 and harvest spring wheat closed down 9. In the overnight trade all of our markets remain on the negative side. Oil closed down $0.14 yesterday at $67.20 per barrel. It is weaker in trading again this morning with it now valued at $66.69 per barrel. Our dollar started out yesterday morning at $0.729 US and has trended higher since then. This morning it is currently valued at $0.731 US.
Going into the weekend the weather forecast for the US Corn Belt had some extra heat coming. The high temperatures are expected to stick around this week but unfortunately for prices (but good for crop growth) rains came on the weekend with more in the forecast for this week. With adequate moisture present the growing crops should be able to handle the extra heat in the current weather forecast.
Of course the weather events led to lower prices yesterday for our commodities. Staying with this thought the weather forecast going forward is also negative for prices. We should note that the US announced a new wheat deal with Bangladesh yesterday that will increase annual wheat sales from 100,000 tonnes up to 700,000 tonnes. This is a small sale in the big picture but should still be seen a supportive wheat prices going forward.
Yesterday the USDA released their weekly Crop Progress Report. The good to excellent rating for their corn crop was unchanged from last week at 74%. Last year at this time this crop had a 67% good to excellent rating. They also reported that 56% of this crop is now pollinating. This is just behind both last year’s 58% and the 5 year average of the same 58%.
The good to excellent rating for their soybean crop decreased 2% week over week to come in at 68%. Last year at this time this crop also had a 68% good to excellent rating. They also report that 62% of this crop is now flowering. This is up 17% from last week and compares to 63% at both this time last week and the 5 year average.
Their spring wheat crop also had a decrease in the good to excellent rating of 2% from last week to come in at 52%. Last year at this time this crop had a 77% good to excellent rating. They also report that 87% of this crop is now headed. This is up from 78% last week and compares to 87% at this time last year and the 5 year average of 88% headed.
Harvest completion for their winter wheat crop increased from 63% last week up to 73% this week. This compares to 75% harvested at this time last year and the 5 year average of 72%.
This report should be considered neutral for corn and winter wheat with the stable good to excellent rating in corn and the harvest progressing for winter wheat. For soybeans and spring wheat the decreased good to excellent rating should be slightly supportive for 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
Tony Mitchell | 613-227-2525
Office | 613-489-0956
