Tuesday was another mostly negative day for our markets. Harvest corn closed down 3 1/4, harvest soybeans closed down 7 1/2, spot winter wheat closed down 4 1/4 and harvest spring wheat closed up 3/4. In the overnight trade corn remains negative with soybeans and the wheat sector mixed. Oil closed down $1.06 yesterday at $62.36 per barrel. It is stronger in trading this morning with it now valued at $63.08 per barrel. Our dollar started out yesterday morning at $0.724 US and then trended lower going down to $0.720 US in the overnight trading session. It has bounced back just a bit this morning with it now currently valued at $0.721 US.
Row crop prices were pressured lower yesterday with the Pro Farmer Crop Tour reports for their first day confirming higher yields this year. This was of course expected after the USDA increased their yields last week with the monthly WASDE report. We should expect the downward price pressure to remain for the week as the crop tour progresses. What will probably be most important is what average yield projection they come up with at the end of the crop tour.
The soybean market in the US continues to look for export sales to be made to China. Currently there are no export sales on the book to China for this year’s crop that will soon be harvested. This is keeping a lid on prices even with the lower harvested acres and total production announced last week by the USDA. Without any exports to China the domestic market will remain oversupplied and any significant price increase would be hard to imagine.
As we have talked about many times it is very hard to think that demand from China will save our markets. Domestic production of all of our commodities keeps increasing in China and we know they are currently decreasing their hog herd which will lead to decreased demand for corn, wheat and soybeans. Current data out of China reports that wheat imports so far this year have totalled only 2.37 million tonnes. This is down 76% year over year. The days of every increasing demand from China seems to be over.
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
