Monday was a mostly negative day for our markets. Harvest corn closed down 5, harvest soybeans closed down 9 1/2, harvest winter wheat closed up 1/4 and harvest spring wheat closed down 3 1/4. In the overnight trade corn is mixed with soybeans and the wheat sector on the negative side. Oil closed up $1.55 yesterday at $66.71 per barrel. It is flat in trading this morning with it now valued at $67.72 per barrel. Our dollar had a high yesterday morning before noon of $0.729 US and has trended lower since then. This morning it is currently valued at $0.727 US.
New crop harvest corn futures almost reached a new low yesterday. They are being pressured by the favourable for crop growth 15 day weather forecasts for much of the US growing areas. Traders are now expecting an above trend corn yield and this will keep pressure on corn prices unless the weather changes drastically. In support for the corn market new crop export sales are up 38% from this time last year however these increased sales have seemingly had little impact on prices.
On the trade front the marketplace is watching closely how the high level meetings proceed between China and the US this week. Even if a new trade deal is not reached an agreed upon extension of talks would be considered positive for our agricultural markets.
The USDA released their weekly Crop Progress Report yesterday. The good to excellent rating for their corn crop actually decreased 1% week over week to sit at 73%. Last year at this time this crop had a 68% good to excellent rating. They also reported that 76% of this crop is now silking. This is up from 56% last week and is right in line with last year’s 75% and the 5 year average of 77% silking.
For their soybean crop the good to excellent rating increased 2% week over week to sit at 70%. Last year at this time the soybean crop had a 67% good to excellent rating. They also report that 76% of the crop is now in the flowering stage. This is up from 62% last week and is right in line with last year’s 75% blooming.
The good to excellent rating for their spring wheat crop decreased 3% week over week to sit at 49%. Last year at this time the crop had a 74% good to excellent rating. They also report that the spring wheat harvest has now started with it 1% complete. This is slightly behind their 5 year average of 3%.
Harvest of their winter wheat crop increased 7% week over week to sit at 80%. This is just behind both last year’s 81% and the 5 year average of 81%.
Even with the small decrease in the good to excellent rating for their corn crop this report should be considered mostly neutral corn. For soybeans the report is bearish with the increased good to excellent rating. The report is bullish prices for spring wheat with the decrease in its good to excellent rating and is neutral for winter wheat with harvest progress right on pace.
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
