Monday was another mixed day for our markets. Spot corn closed down 1 3/4 with harvest corn up 3 1/2, harvest soybeans closed up 27, harvest winter wheat closed down 6 1/2 and harvest spring wheat closed down 9. In the overnight trade all of our markets are on the negative side. Oil closed up $0.93 yesterday at $61.95 per barrel. It is stronger in trading again this morning with it now valued at $62.49 per barrel. With some choppy trading over the last 24 hours our dollar has traded between a low of $0.714 US and a high of $0.716 US. This morning it is right in the middle of that range with it currently valued at $0.715 US.
Soybeans took off yesterday and were supported on a couple of different fronts. Off course the main reason is the trade truce made between China and the US. As we noted in yesterday’s report they have agreed to drastically decrease their reciprocal tariffs for a 90 day period. During this time they are expected to negotiate a new comprehensive trade deal which the market is speculating will include increased soybean trade between the two countries.
The USDA released their monthly WASDE report yesterday and did make some changes to carryout stocks for this year. They actually decreased US carryout stock levels for all of corn, soybeans and wheat. Most of the decrease was due to increases in export levels of the different commodities.
For this growing year the USDA is projecting record corn production of 15.82 billion bushels. Projected carryout stocks for next year came in 1.8 billion bushels which was lower than the average trade estimate due to strong corn usage. All in all this report should be considered slightly bullish for the corn market.
Soybean stocks are projected to decrease next year even with the USDA utilising a new record yield of 52.5 bushels per acre. With the decreased soybean acres this year and mostly a stable demand side of the balance sheet soybean supply could become tight if they have any production issues this year. This report should also be considered slightly bullish for the soybean market.
Although they did decrease the US wheat carryout for this year they did increase world stocks. Carryout stocks are projected to increase next year based on strong production estimates for this year’s crop. Unfortunately this report was bearish for the already beaten down wheat market.
The USDA also released their weekly Crop Progress Report yesterday. Planting pace and crop ratings were strong and this is having a negative influence on our prices this morning. I will get more into this report with tomorrow’s daily blog.
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
