Monday was a negative day for our markets. Harvest corn closed down 2 1/4, harvest soybeans closed down 14 1/2, spot winter wheat closed down 11 3/4 and spot spring wheat closed down 3 1/2. In the overnight trade all of our markets remain on the negative side. Oil closed down $0.40 yesterday at $62.28 per barrel. It is stronger in the overnight trading with it now valued at $62.97 per barrel. Our dollar had a high yesterday morning of $0.725 US and a low in the overnight trading of $0.722 US. It has bounced back just a bit this morning with it now currently valued at $0.723 US.
The soybean market pulled all of our commodities lower yesterday. It was hurt with an announcement out of Argentina that their government is waiving the current export taxes on grains, soybeans and soybean products until the end of October. These export taxes are at about 25% on the soybean sector and 9% for corn. This will make their products very attractively priced for Chinese purchasers. Prices pulled back on the CBOT as this action gives China another reason not to purchase US soybeans. How the US deals with their soybean supply from this year’s harvest is something that will have to play out. The continued lack of Chinese purchases will keep a lid on any price rally. Currently prices are down about $20 per tonne since last Tuesday.
Yesterday the USDA released their weekly Crop Progress Report. The good to excellent rating for their corn crop decreased 1% week over week to sit at 66%. Last year at this time the corn crop had a 65% good to excellent rating. They also report that 11% of the corn is now harvested. This is up from 7% last week and compares to 13% at this time last year and the 5 year average of 11%.
For soybeans the good to excellent rating decreased 2% week over week to sit at 61%. Last year at this time their soybean crop had a 64% good to excellent rating. Soybean harvest was up 4% week over week to sit at 9% finished. Last year at this time they had 12% of their crop harvested and the 5 year average is 9%.
The spring wheat harvest is reported at 96% complete. This is up from 94% last week and is right in line with last year’s 95% complete and the 5 year average of 96%.
Winter wheat plantings increased 9% week over week to sit at 20%. Last year at this time they had 23% of their crop planted and the 5 year average is also 23%.
This report should be supportive for corn and soybeans with their good to excellent ratings decreasing. For the wheat market it should be considered mostly neutral 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
Tony Mitchell | 613-227-2525
Office | 613-489-0956
