Friday August 26, 2016, 7:10 a.m. - Yesterday was a another negative day for our markets being led on the down side by soybeans. Harvest corn closed down 4, soybeans down 29 3/4, winter wheat down 2 3/4 and spring wheat down 4 1/4. In the overnight trading corn, soybeans and spring wheat are negative with winter wheat being on both sides of the ledger. Oil closed up about $1 yesterday at $47.33 per barrel. Overnight it is down slightly with it currently trading at $47.22 per barrel. Our dollar has followed oil over the last day with it now at $0.775 U.S.. Soybean prices were hit hard yesterday as the thought of higher yields this year in the U.S. is being reinforced with the Pro Farmer Tour soybean pod count. The strong numbers coming out of the tour plus the current favourable weather is leading to rumours of an even higher average yield then the USDA has projected. I found one report this morning looking at 50 bushels per acre for the U.S. this year compared to the 48.9 bushel average the USDA last reported. Soybean prices are also being hit by a fall off in soymeal futures and demand. Remember soymeal demand was what led this market to its large rally earlier this year. One final thought on soybeans, yesterday very strong weekly export numbers were released and this positive news was pushed aside by the production numbers above. The International Grains Council released a report that shows increased world wide production this year for corn, soybeans and wheat. This basically backs up recent USDA projections. One thing to note is a potential concern of lower protein wheat that is being produced in many areas. Ths should lead to strong premiums for higher protein wheat. However I do not see this occuring in our markets due to the overabundance of good quality wheat in Ontario. Friday's thought: The only exercise some people get is running their mouth, jumping to conclusions and pushing their luck! Please call Geoffrey Guy at 613-880-2707 if you would like any direct ship pricing. We have prices right up to next years harvest. Prices quoted herein are for product at our elevator.
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