Tuesday was another mixed day for our markets. Harvest corn closed down 4 1/2, harvest soybeans closed up 2, harvest winter wheat closed up 2 and harvest spring wheat closed down 3 3/4. In the overnight trade corn and the wheat sector are negative with soybeans mixed. Oil closed up $1.71 yesterday at $63.66 per barrel. It is weaker in trading this morning with it now valued at $62.88 per barrel. Our dollar had a low yesterday morning before noon of $0.714 US and then trended higher going up to $0.719 US in the overnight trading. It has pulled back this morning with it currently valued at $0.717 US.
After the market rallied on Monday with the positive news on the trade front between China and the US it was more tempered yesterday. It seems that the positive crop prospects for this year in the US pulled back some of those positive vibes from Monday. As we note below the Crop Progress Report brought forward some information that was more bearish for prices. It will be interesting to watch for the rest of this week just which side wins out in the short term.
On Monday afternoon the USDA released their weekly Crop Progress Report. They reported that corn plantings increased 22% week over week to sit at 62% complete. This compares with 47% at this time last year and the 5 year average of 56% planted.
For soybeans plantings increased by 18% week over week to sit at 48% complete. This compares to 34% at this time last year and the 5 year average of 37% planted.
Spring wheat plantings increased 22% week over week to sit at 66% complete. This compares to 59% at this time last year and the 5 year average of 49% planted.
The good to excellent rating for their winter wheat crop increased 3% week over week to sit at 54%. Last year at this time this crop had a 50% good to excellent rating. They also reported that 53% of this crop is now headed. This compares to 55% at this time last year and the 5 year average of only 45% headed.
This report is most definitely bearish prices for all of our commodities. The quick planting pace and the stronger crop rating all point towards strong yield potential for this current crop year.
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
