Weekly market update plus a year in review for corn and soybean prices. .Thanks for tuning in.
Thursday, January 20, 2022, 7:40 a.m. – Yesterday was a mostly positive day for our markets. Spot corn closed up 1/2, spot soybeans closed up 34 1/2, spot winter wheat closed down 6 1/4 and spot spring wheat closed up 5. In the overnight trade all of our markets are back on the negative side. 0il closed up $1.34 yesterday at $86.96 per barrel. It is down just a bit this morning with it now valued at $86.90 per barrel. Our dollar had a high yesterday morning of $0.803 US and then trended mostly lower for the rest of the day and the overnight trading. This morning it is currently valued at $0.798 US.
Soybean oil prices took off yesterday and this pulled soybean prices with it. We should point out that soybean oil prices have recently fallen behind some other vegetable oil products on the world market but they are quickly making up this shortfall. With the strong soybean oil price, the soybean crush margin in the US remains very attractive which further supports the price of soybeans. As we noted yesterday crude oil prices are being supported by the potential conflict between Russia and the Ukraine and this further supports the price of soybean oil.
Contrary to the above ethanol prices are not being supported in the short term by the current strength in energy prices. Inventory levels in the US are currently at a one year high and prices have fallen back significantly since the high made last fall. There are rumours out in the US that the ethanol blend mandate may be decreased this year by the current administration. This would be a big negative for the industry if it is to occur which would be large negative for the corn market. Hopefully this is only a rumour and does not come into play.
Please call Geoffrey Guy at 613-880-2707 or Delores Foster at 613-880-7458, or Bob Orr at 613-720-1271 if you would like prices for crop you have stored on your farm. Prices quoted herein are for product at our elevator.