Tuesday was another negative day for our markets. Harvest corn closed down 5, harvest soybeans closed down 3 3/4, harvest winter wheat closed down 7 and harvest spring wheat closed down 2 1/4. In the overnight trade corn and winter wheats are negative with soybeans and spring wheat sector on the positive side. Oil closed down Tuesday $1.11 at $65.18 per barrel. It is stronger in trading again this morning with it now valued at $66.25 per barrel. Our dollar had a high yesterday of $0.727 US and a low of $0.724 US. It is still sitting around the low this morning currently valued at $0.727 US.
It was a bearish day overall, with corn and both wheat contracts hitting new contract lows. There’s very little supporting the row crop markets at the moment.
President Trump has indicated that the U.S. is getting close to a trade deal with China, but so far, soybean exports have not been part of the conversation.
Big crops are in sight, with favorable weather continuing across much of the U.S. StoneFX released a corn yield estimate of 188.1 bu/acre — more than 7 bu above the USDA’s last forecast. That would imply a 16.3 billion bushel crop and push U.S. corn carryout to 2.4–2.5 billion bushels — a very bearish outlook. The silver lining is that there is still good export demand for corn, which is not the case for soybeans.
On the wheat front, global supplies are weighing heavily on the market. Russia is actively seeking export opportunities, and the EU has more wheat to export than last year. Additionally, growing conditions remain favorable in both Argentina and Australia. Simply put, there’s no fresh bullish news to support wheat prices right now.
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
