Friday, May 24, 2019, 6:40 a.m. – Yesterday was a negative day for our markets. Spot corn closed down 4 3/4, spot soybeans were down 7, spot spring wheat was down 9 1/2 and spot winter wheat was down 2 1/2. In the overnight trade all of our markets are back on the positive side. Oil closed down $3.51 yesterday at $57.91 per barrel. It is stronger this morning with it now trading at $58.58 per barrel. Our dollar had a daily low yesterday morning of $0.741 US and has traded mostly up since that time. This morning it is currently valued at $0.744 US. The corn market was trading up yesterday until the USDA announced their 2019 Market Facilitation Program for farmers. This aid package is to help make up for any damage caused by the trade war with China. Although many details are yet to be announced they have set aside $14.5 billion and payments will be set on a per acre basis and is not dependent on which crops are planted in 2019. Before the announcement the corn market was trading at technical resistance levels on both the nearby and harvest 2019. After the announcement they both pulled back about 10 cents. The market treated the new package as a disincentive for farmers to take prevent plant acres for this year. This would have farmers planting crop even if they are past the upcoming decision dates to put acres into the prevent plant program. For this to happen farmers still need weather to cooperate and the forecast for much of the US remains unfavourable for planting. Weekly exports of corn, soybeans and wheat out of the US came in within expectations. One thing to note however is that China still has 7 million tonnes of unshipped soybean commitments from the US. These commitments were made during some of the recent trade negotiations. It will be interesting to see if they actually take delivery of these soybeans or cancel the orders as another trade war casualty. Friday’s thought: Happiness is not our master. We have to master happiness! 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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