Tuesday, November 28, 7:00 p.m. – Monday was another negative day for our markets. Harvest corn closed down 7 3/4, harvest soybeans closed down 1, spot winter wheat closed down 14 1/2 and spot spring wheat closed down 12 1/4. In the overnight trade all of our markets are back on the positive side. Oil closed down $0.68 yesterday at $74.86 per barrel. It is stronger in trading this morning with it currently valued at $75.65 per barrel. Our dollar had a low yesterday morning of $0.733 US and then turned higher going up to $0.737 US in the overnight trade. It has eased back just a bit this morning with it currently valued at $0.736 US. What a rough start to the trading week our markets had yesterday. Corn reached a new low on the CBOT for this trading year. The large supply of corn available from the record harvest in the US is overwhelming the demand side of the market. Better weather in Brazil is giving their crops a more robust outlook and this also weighed on the market. The strong demand in the US from both ethanol production and stronger exports this year has not been enough to keep prices stronger. Where the bottom is for this market is yet to be seen! The wheat market was even worse off than corn yesterday. All three wheat exchanges in the US reached new lows for this year. The trend remains down not just for US wheat but in the world market with Russia dominating the export market with low prices. Milling wheat in France also hit a market low yesterday as they are unable to compete with low cost Russian supplies. It is really hard to find positive scenarios for wheat prices going forward. It is nice to see prices back on the positive side this morning after reaching all the new lows yesterday. Whether or not any real rallies can get going only time will tell.
