Tuesday was another mostly negative day for our markets. Harvest corn closed up 1 3/4, harvest soybeans closed down 5 1/4, harvest winter wheat closed down 3 1/2 and harvest spring wheat closed down 2 1/2. In the overnight trade corn, soybeans and winter wheat are positive with spring wheat mixed. Oil closed down $0.46 yesterday at $66.52 per barrel. It is weaker in trading again this morning with it now valued at $65.96 per barrel. Our dollar started out yesterday morning at $0.731 US and then went down to $0.728 US before noon. It is just a bit stronger this morning with it now currently valued at $0.729 US.
Much like on Monday our markets all traded positive for part of the day yesterday before pulling back. It seems that the marketplace cannot make up its mind on what direction it wants to go presently. Recently anytime prices get on the positive side the bears pull it back and they have lots of reasons for doing this. Let’s say the largest being the favourable growing conditions that US crops are having this year and the continued strong prospects of strong yields.
The soybean crush in the US came in at 185.7 million bushels in June. This was an increase of 6% from June of 2024 and was also a new record amount for the month. The average daily rate of crush in June was 6.19 million bushels which was down slightly from the 6.22 million bushels crushed per day in May. Continued strong and seemingly increasing demand for soybean oil is helping to keep the crush numbers strong. Unfortunately the strong crush numbers is resulting in an oversupply of soybean meal and prices for it continue to grind lower.
We should point out that soybean futures have tested the $10.00 per bushel future price but have rallied higher each time. Future prices are stronger today and are likely being supported by the trade deal announced between the US and Indonesia. This deal is reported to include increased agricultural imports from the US which should include increased soybean shipments.
The wheat market continues to get mixed messages. A consultant firm in Russia has decreased their wheat production and export forecast by 0.5 million tonnes due to dryness in some of their growing areas this year. This is after we have seen a steady stream of production projection increases for this year. At the other side for the wheat market production in France is projected to increase 27% from last year up to 32.5 million tonnes. Last year their crops were reduced due to wet growing conditions.
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
