Thursday, October 19, 7:00 a.m. – Yesterday was a quite negative day for our markets. Harvest corn closed down 1 1/2, harvest soybeans were down 1/2, spot winter wheat closed down 4 3/4 and spring wheat closed down 1. In the overnight trading all of our markets are even or just on the positive side. Oil closed up $0.16 yesterday at $52.04 per barrel. It is weaker this morning with it now trading at $51.28 per barrel. Our dollar started yesterday morning at $0.798 U.S. and strengthened with a gain of 50 basis points up to $0.803 U.S.. It has held mostly steady since that time with it currently trading at $0.803 U.S.. Egypt has returned to the market with another tender for wheat. This is their 14th tender for shipment this season. Russia is of course expected to win this tender as they continue to be a low cost provider of wheat. France and Argentina have recently announced a large sale of wheat to Algeria. It seems that at the current low world price of wheat demand steps up and wheat is purchased. When prices go a bit higher the buyers step back and wait for prices to come back down. Weekly exports for wheat from the U.S. are expected at 250,000 to 400,000 tonnes for last week. This is significantly higher than the previous week’s export of 174,961 tonnes. At the current low price U.S. wheat can find a home on the world market, however just not to the large importers like Egypt that Russia has both a price and shipping advantage. The corn market remains flat with no news to drive prices either way. Weekly export numbers are expected a bit lower for corn week over week. The soybean market continues to watch Brazil. One day there is talk of much needed rain and the next day the forecasts are not showing moisture in the dry areas. We are truly in a weather market for the crop in Brazil with the current dry areas not enough to drive prices higher. Luckily for soybeans worldwide demand remains strong with U.S. exports continuing to move their large supplies. Locally we are not seeing much export demand for soybeans this fall. Basis levels are flat. Unless somebody steps up with an export program we do not expect to see much improvement in local prices. 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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