Tuesday was another mostly negative day for our markets. Spot corn closed down 1 1/2, spot soybeans closed up 5 1/2, harvest winter wheat closed down 12 1/4 and harvest spring wheat closed down 11. In the overnight trade all of our markets are on the positive side. Oil closed down $11.32 yesterday at $83.45 per barrel. It is stronger in trading this morning with it now valued at $85.58 per barrel. Our dollar has traded between a low of $0.736 US and a high of $0.738 US over the last 24 hours. This morning it is right in the middle of the range with it currently valued at $0.737 US.
Another volatile day in our markets! Oil prices pulled back hard yesterday with an announcement that the International Energy Agency is going to release up to 400 million barrels of oil (out of reserves) to ease any concerns with the current supply situation due to the war in Iran. This is roughly twice as much crude oil that was released when Russia invaded Ukraine just over four years ago.
Soybeans had another wild day trading within a 30 cent range with winter wheat trading within a 20 cent range. The soybean price probably was affected more by the large drop in crude oil prices noted above. It is nice to see that prices have bounced back to the positive side this morning.
The bump this morning in soybean prices may be due to the meeting this week between high level diplomats from China and the US. They are supposed to be setting the ground work for the upcoming meeting between the two Presidents early next month. Rumours / hopes that China will increase soybean purchases from the US continue to circulate. This is one of the reasons that Speculative Funds have a very large long position (looking for prices to go up) in the soybean complex.
Yesterday the USDA released their monthly WASDE report. They only made minimal changes to the balance sheet of corn and soybeans however they did not change carryout stock numbers. They did increase world corn stocks due to strong production in other areas around the world.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
