Tuesday was a mostly negative day for our markets. Harvest corn closed down 3/4, harvest soybeans closed down 3 1/2, harvest winter wheat closed up 2 and harvest spring wheat closed down 1 3/4. In the overnight trade all the commodities are on the positive side. Oil closed down $3.10 yesterday at $88.20 per barrel. It is stronger this morning with it now valued at $89.76 per barrel. Our dollar has traded between a low of $0.716 US and a high of $0.718 US over the last 24 hours. This morning it is at the high end of the range with it currently valued at $0.718 US.
The crude oil market was sharply negative yesterday after the US Energy Secretary announced that the ship traffic is increasing in the strait of Hormuz. Then overnight a series of strikes were made by the US against Iranian missile sites. These strikes were preannounced by President Trump on social media late in the day yesterday, saying the US “must” respond after Iran downed a US helicopter on Monday. And just this morning on Trust Social Trump messaged stating Iran is taking too long to negotiate a deal and they now “have to pay the price!!!” The oil market and grain markets are both responding positively to the events over night and this morning.
Planting in the western Canadian provinces is all behind last years pace. Manitoba is at 93% seeded vs last year’s 99%, Saskatchewan is at 80% seeded vs 5-year average of 91% and Alberta at 92% seeded vs their 5-year average of 97%. Some heavy rains have hit all 3 provinces this week, which will continue the delays. Weather remains positive for the Midwest and eastern growing regions.
The markets will be watching the conflict between US and Iran closely in the coming days. It might be a good time to get some target orders in place to take advantage of any market rallies. Give us a call anytime.
Geoffrey Guy | 613-880-2707
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
