Tuesday was a negative day for our markets. Harvest corn closed down 2, harvest soybeans closed down 2 1/2, spot winter wheat closed down 3 1/2 and spot spring wheat closed down 2 3/4. In the overnight trade all of our markets remain on the negative side. Oil closed up $0.37 yesterday at $62.63 per barrel. It is stronger in trading again this morning with it now valued at $63.27 per barrel. Our dollar started out at yesterday morning at $0.724 US and has trended lower since then. This morning it is currently valued at $0.721 US.
Our markets closed lower yesterday even with the decreased crop condition ratings for both corn and soybeans coming out of the USDA with Monday’s Crop Rating Report. It seems that the marketplace is waiting for the monthly WASDE report this Friday to see what direction it will give with possible production number decreases. With harvest started in the US for corn and just around the corner for soybeans producers will be hoping that the USDA will provide some data to get the markets moving. Any confirmed decrease in yields will not be available until harvest progress picks up significantly.
Currently US soybeans are about $0.89 US less expensive on a FOB basis then soybeans from Brazil. Even with this discount China continues to purchase soybeans from Brazil with the current delivery period for the majority of these purchases being November. This is historically the time of the year that soybeans from the US dominate the Chinese market. Most of us would agree that the lack of Chinese purchases is related to the trade situation between the two countries. The legal state of the tariffs placed by President Trump is also in play as China could just be waiting to see if the tariffs will remain in place or be removed by the court system in the US. Whatever the reason is for the lack of these purchases it is most definitely keeping a lid on prices!
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
