Monday was a negative day for our markets. Spot corn closed down 14 3/4 with harvest corn down 7 1/4, spot soybeans closed down 12 1/2 with harvest soybeans down up 8 1/4, harvest winter wheat closed down 11 3/4 and harvest spring wheat closed down 1 3/4. In the overnight trade corn and soybeans are mixed, spring wheat is negative and winter wheat is now positive. Oil closed down $1.16 yesterday at $57.13 per barrel. It is stronger in trading this morning with it now valued at $58.54 per barrel. Our dollar has traded between a low of $0.722 US and a high of $0.725 US over the last 24 hours. This morning it is currently valued at $0.723 US.
Crude oil prices continue to grind lower with the OPEC + nations agreeing to increase production over the next couple of months. With supplies increasing and world demand decreasing prices should continue to trend lower. Lower crude oil prices affect the renewable fuel sector and as such corn and soybean prices also fell hard yesterday.
The USDA released their weekly Crop Progress Report yesterday. Corn plantings increased 16% week over week to sit at 40% complete. This compares favourably to last year’s 35% complete and the 5 year average of 39% complete. They also reported that 11% of this crop is now emerged. This is up from 5% last week and compares to 11% at this time last year and the 5 year average of 9% emergence.
Soybean plantings increased from 18% complete last week up to 30% complete this week. This is well ahead of last year’s 24% planted and the 5 year average of only 23% planted for this time of the year.
Spring wheat plantings increased 14% week over week to sit at 44% planted. This compares to 45% at this time last year and the 5 year average of only 34%.
The good to excellent rating for their winter wheat crop increased from 49% last week up to 51% this week. They also reported that 39% of the crop is now headed. This compares to 41% at this time last year and the 5 year average of only 33% headed.
This report is generally bearish for prices across our commodities. The quick planting pace for all of corn, soybeans and spring wheat is considered negative for prices. For winter wheat the stronger crop ratings is also a negative for prices.
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
