Tuesday was a mostly negative day for our markets. Harvest corn closed down 6 1/2, harvest soybeans closed up 3/4, harvest winter wheat closed down 2 and harvest spring wheat closed down 3 1/2. In the overnight trade corn is negative, soybeans are mixed and the wheat sector is positive. Oil closed up $1.26 yesterday at $63.67 per barrel. It is stronger in trading again this morning with it now valued at $64.30 per barrel. With some very choppy trading yesterday our dollar traded between a low of $0.721 US and a high of $0.725 US over the last 24 hours. This morning it is currently valued at $0.723 US.
Corn prices pulled back yesterday with the weakness coming from the faster than expected planting pace reported late on Monday. With a favourable weather forecast over much of their corn growing area the quicker than average plantings should continue. This is all the market needs to pull down prices at least in the short term.
Soybean plantings were also ahead of the 5 year pace however the market did not see this as a negative for prices. They see the fast planting pace of corn as a positive for soybean prices with the thought that the faster the US farmer plants corn the more likelihood there is that they will plant more corn acres. Of course more corn acres results in less soybean acres which should result in less soybeans overall which should support higher prices.
Wheat prices in France fell to a new 13 month low yesterday. They were pulled down by continued slow exports which are leaving too much supplies for their domestic markets. Favourable rains coming to much of the HRW wheat areas in the US also helped to pull down this market. Even with production concerns coming out of the Black Sea Region this spring due to a lack of moisture the wheat sector pulled back.
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
