Tuesday was another mostly negative day for our markets. Harvest corn closed down 2 1/2, harvest soybeans closed unchanged, harvest winter wheat closed down 5 1/2 and harvest spring wheat closed down 4 3/4. In the overnight trade corn and soybeans are mixed with the wheat sector just on the positive side. Oil closed down $0.11 yesterday at $69.00 per barrel. It is stronger in trading this morning with it now valued at $69.40 per barrel. Our dollar started out yesterday morning at $0.700 US and then went down to $0.699 US before noon. It has trended higher since then with it currently valued this morning at $0.702 US.
With the negative prices yesterday we should note that old crop corn and soybeans had larger negatives then harvest prices. The marketplace is more worried on what affect the tariffs will have next week on old crop as compared to harvest. We all know that the markets will respond immediately next week when the tariffs are announced again and it is only reasonable to think that the nearby market will be affected more than futures.
Wheat prices continue to struggle even with some recent bullish news in the market. We have talked about how dry weather in the US could be stressing the growing winter wheat crop. Currently SRW wheat in the US is priced 50 cents per bushel lower than similar wheat in Russia on a FOB basis. This should be making US wheat attractive on the world market however exports are not showing this.
Although soybean prices were lower on the nearby yesterday soybean oil prices did rally. They are being supported by strong export sales and thoughts that tariffs next week will support the US domestic soybean oil market. More specifically import tariffs on used cooking oil being imported from China and canola oil from Canada should make US soybean oil more economical for biodiesel production.
It was reported last night that Russia and Ukraine are agreeing to a 30 day stoppage of hostile activities in the Black Sea. This should help to facilitate exports of agricultural products out of both countries. Generally this should be considered negative for our markets going forward.
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
Office | 613-489-0956
