Monday was a positive day for our markets. Harvest corn closed up 3 3/4, harvest soybeans closed up 6 3/4, spot winter wheat closed up 4 1/2 and spot spring wheat closed up 10 3/4. In the overnight trade corn is negative with soybeans and the wheat sector positive. Oil closed up $0.39 yesterday at $62.26 per barrel. It is stronger in trading again this morning with it now valued at $62.70 per barrel. Our dollar has traded between a low of $0.723 US and a high of $0.725 US over the last 24 hours. This morning it is at the middle of the range with it currently valued at $0.724 US.
Wheat prices rallied yesterday after prices have fallen near to a 5 year low on the CBOT. When prices get to these lows traders liquidate a portion of their short positions to lock in some profits. This has come at the same time that wheat production out of Russia is increasing with some record spring wheat yields this year. Total production has increased from early season projections of just over 80 million tonnes up to new projections of 86 million tonnes.
Reports out of China had them importing a record amount of 12.2 million tonnes of soybeans in August. This was about 2 million tonnes higher than most analysts had expected. It seems that they are building up their soybean inventory to mitigate the lack of purchases from the US so far this year.
As China looks to other countries for soybean imports we should point out that the USDA is projecting Brazil to export 112 million tonnes of soybeans this year and China is expected to import the same amount. Brazil does sell soybeans to more countries then just China but theoretically now they could supply all of the Chinese demand going forward. The USDA also reports that there is another 74 million tonnes of import demand around the world that still needs to be supplied.
The USDA released their weekly Crop Progress Report yesterday. The good to excellent rating for their corn crop decreased 1% week over week to sit at 68%. Last year at this time this crop had a 64% good to excellent rating. They also report that harvest season has begun with 4% of the crop now harvested. Last year at this time they had 5% of their crop harvested and the 5 year average is 3%.
For soybeans the good to excellent rating also decreased 1% week over week to sit at 64%. This is the same rating that this crop had last year at this time. They also reported that 21% of this crop is now dropping leaves. This is up from 11% last week and compares with 23% at this time last year and the five year average of 22%.
The spring wheat harvest continues with it now reported at 85% complete. This is up from 72% last week and compares to 83% at this time last year and the 5 year average of 84% harvested.
They are now reporting on winter wheat plantings. It is reported at 5% complete. This compares to 5% at this time last year and the five year average of 4% planted.
This report should be considered supportive prices for corn and soybeans with the small decreases in their good to excellent ratings. For the wheat sector this report should be considered neutral.
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
