Friday, March 21, 2019, 7:10 a.m. – Yesterday was a mostly positive day for our markets. Spot corn closed up 4 3/4, spot soybeans closed up 4 1/2, spot spring wheat was down 1/4 and spot winter wheat was up 1 3/4. In the overnight trade corn and winter wheat are positive while both soybeans and spring wheat are hovering around even. Oil closed down $0.25 yesterday at $59.98 per barrel. It is down again this morning with it now trading at $59.44 per barrel. Our dollar had a high yesterday morning of $0.751 US and then a low before noon of $0.747 US. It rebounded some after that but has traded weaker again in the overnight. This morning it is currently valued back at yesterday’s low of $0.747 US. Soybean prices on the CBOT have jumped back up over the 100 day average. This can be looked as somewhat a surprising development. There is currently a lot of doom and gloom in this marketplace. South American Production is projected higher this year than last year. The African Flu is reducing the size of the hog herd in China and neighboring countries that will reduce the demand for soymeal. Large carryout stocks in the US this year will also help to keep a lid on prices and of course we have the uncertainty of a trade deal between China and the US. Depending on what article you read either negotiations are going well or they have hit a hard spot with neither side willing to give in. Bottom line is that there are many reasons for this market to go down further but somehow it is keeping prices fairly stable. The weather in the northern US with current floods and the short term wet and cold forecast could be bringing a weather risk premium into our markets. Much of the Corn Belt is rated with severe flooding risks going into the spring planting season. Sooner or later the market will have to deal with the potential of delayed plantings and possibly reduced yields. Weekly export sales out of the US for last week were within expectations for corn and wheat. Unfortunately they were below expectations for soybeans. On the positive side hog exports were solid which could result in increased feed demand in the US this year. Friday’s thought: Very little is needed to make a happy life. It is all within yourself and your way of thinking! 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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