Friday, February 22, 2019, 6:55 a.m. – Yesterday was a nice positive day for our markets. Spot corn closed up 4 3/4, spot soybeans closed up 8 1/2, spot spring wheat was up 9 and spot winter wheat was up 5 3/4. In the overnight trade corn and spring wheat are positive, soybeans are even and winter wheat is just negative. Oil closed down $0.20 yesterday at $56.96 per barrel. It is stronger this morning with it now trading at $57.40 per barrel. Our dollar had a daily high yesterday morning of $0.760 US. It went down to $0.755 US early in the overnight trading and then started to rally. This morning it is currently valued at $0.757 US. Our markets rallied yesterday with news of significant possible progress in trade talks. There are unconfirmed reports that memorandums of understanding are being completed that will be the base of a new trade deal that the leadership of both countries can review. Further to these rumours it has been reported that the China will increase their agricultural purchases up to $30 billion worth per year. For reference in 2017 (which is the last full year before the tariffs came into effect) China purchased about $23 billion of US agricultural products. If these parts of the rumours are true and this makes it into a final deal it could give our markets a nice push up on prices. Acreage estimates from the Ag Outlook Forum were released yesterday. Corn acres are forecasted to increase by 2.87 million acres up to 92 million acres for the coming year. Soybeans acres are forecasted to decrease by 3.2 million acres to 85.0 million acres. Total wheat acres are expected to decrease by 0.8 million acres to 47.0 million acres. These numbers did nothing to move the markets as they were all within pre-report estimates. Today the weekly export sales data dump will catch up on all the missed export activity during the US Government shutdown. These numbers definitely do have the ability to move our markets either way. Friday’s thought: The less you respond to rude, critical, argumentative people, the more peaceful your life will become! Please call Geoffrey Guy at 613-880-2707or Bob Orr at613-720-1271 if you would like any direct ship pricing. Prices quoted herein are for product at our elevator.
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