Thursday, March 22, 2018, 5:30 a.m. – Yesterday was a mixed day for our markets. Spot corn closed up 1/2, spot soybeans were up 1 1/2, spot winter wheat closed up 1/2 and spot spring wheat closed down 4. In the overnight trading all of our markets are currently on the positive side. Oil closed up $1.63 yesterday at $65.17 per barrel. It is a bit lower this morning with it now trading at $65.12 per barrel. The higher price of oil this week has been driven by an unexpected drawdown in inventory levels in the US. Our dollar started yesterday morning at $0.766 and gained strength for most of the day up to $0.775 US. This morning it is even stronger with it currently valued at $0.778 US. The Federal Reserve raised interest rates in the US yesterday by 25 basis points. This move was expected however the market was looking for them to talk about 3 further increases this year and they only talked about 2 further increases. Because of this the US dollar actually decreased in value against most other major currencies. Usually when they increase interest rates their dollar almost immediately increase in value. Our dollar gained further value with reports that the NAFTA negotiations are proceeding and it is increasingly looking like an actual updated agreement will be made. Today President Trump is expected to bring in a comprehensive tariff package against China. He will be targeting goods in as many as 100 different categories and will impose restrictions on Chinese investments in the United States. How this may affect agricultural trade with China will depend on the reaction out of the Chinese government. Remember with China being the largest importer of soybeans in the world the market will be watching closely to see if any tariffs are put on soybean imports from the US. Please call Geoffrey Guy at 613-880-2707or Bob Orr at 613-720-1271 if you would like any direct ship pricing. Prices quoted herein are for product at our elevator.
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