Tuesday was a negative day for our markets. Harvest corn closed down 6, harvest soybeans closed down 8 3/4, spot winter wheat closed down 11 1/2 and spot spring wheat closed down 6 1/2. In the overnight trade all of our markets remain on the negative side. Oil closed down $1.08 yesterday at $62.37 per barrel. It is weaker again in the overnight trading with it now valued at $62.04 per barrel. Our dollar had a high of $0.719 US yesterday morning and has trended mostly lower since then. This morning it is currently valued at $0.718 US.
The USDA did surprise the market place yesterday with an increase in year ending corn stocks. They came in with an extra 195 million bushels of corn to put corn stocks at 1,532 million bushels. The big surprise was that this was higher than any of the pre-report estimates from what we all call the market experts. The USDA utilises this report to amend last year’s production numbers to match the year end stock levels. This occurred for all of our commodities.
With the increase in corn numbers noted above this market pulled back. Higher starting stock numbers will just lead to more logistical problems of where the record crop this year will be stored. With harvest progressing well at this time it is hard to find any real positive for this market.
The soybean market also had higher production numbers but with increased crush demands the stocks level came in at 316 million bushels. This was actually 7 million bushels below what the average trade analyst was looking for. The market was unable to rally on these numbers with harvest progressing well and the lack of a Chinese trade deal. Like the corn market the logistical side of the marketplace will soon be struggling with how to handle all of the soybeans that will be in storage, both commercially and on farm.
Wheat production was also increased for the year and this resulted in carryout stocks coming in at 2,120 million bushels. This was 77 million bushels higher than the average trade estimate.
This report was negative for corn and wheat prices. Soybeans got caught up in the negativity and the net result was that all three of our commodities finished lower yesterday. With the lack of any positive trade news prices are lower again this morning and will most likely struggle going forward to get out of this negative trend.
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
