Daily Blog


 Grains Matter Chatter - Episode 189

https://www.buzzsprout.com/1116593/14611190

Friday, March 1, 7:35 a.m. – Thursday was a mostly positive day for our markets.  Spot corn closed up 1, spot soybeans closed down 4 1/2, spot winter wheat closed up 1 1/2 and spot spring wheat closed up 3.  In the overnight trade corn and the wheat sector are negative with soybeans now on the positive side.  Oil closed down $0.27 yesterday at $78.27 per barrel.  It is stronger in trading this morning with it now valued at $79.46 per barrel.  Our dollar traded in a 30 basis point range yesterday between a low of $0.735 US and a high of $0.738 US.  This morning it is currently valued at $0.737 US.
 
Yesterday we looked at the corn market.  Today let’s take a bit of a deeper look at the soybean market. 

On the negative side for soybean prices going forward.

(1) Argentina has had good weather this growing season and production is projected to roughly double from last year’s drought reduced crop.
(2) Although there is some uncertainty about the final size of the crop this year in Brazil it looks like it will be above 140 million tonnes and with the strong production in Argentina total production in South America will likely match or increase from last year. 
(3) Exports in the US are behind this year from last year. 
(4) Soybeans from Brazil can currently be economically imported into the US and possibly Canada. 
(5) Argentina will become a major player in the world soybean meal trade again this year after leaving that market mostly for Brazil and the US last year. 
(6) Soybean acres are projected to increase by over 3 million this year in the US. 
(7) World supply is easily meeting world demand.
(8) Exports out of Ontario and Quebec were slower last year as they struggle to compete economically on the world market.  

On the positive side for prices going forward.
(1) China remains a consistent purchaser on the world market.
(2) China has not been cancelling shipments from the US even now as purchases from Brazil are currently less expensive.
(3) Soybean oil demand continues to grow for Biodiesel usage in the US and other parts of the world.
(4) Speculative funds are holding a very large short position in the soybean complex and when the time comes to liquidate this position it will help to drive prices up.

 
Just like the corn market overall world demand remains strong however the supply side of the market is dominating world price.  This market will also likely need something to occur that will affect the supply side going forward before any significant increase in price is experienced. 
 
Friday’s thought: When you overthink remember this.  Worrying does not take away tomorrows troubles.  It takes away todays peace!

 

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If you would like to talk about the markets or price some of your crop for the future or in store, please reach out to us. Prices quoted herein are for product at our elevator.

Geoffrey Guy | 613-880-2707
Delores Foster | 613-880-7458
Bob Orr | 613-720-1271
Office | 613-489-0956

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Please send info to;
2518 Lockhead Rd,
North Gower ON K0A 2T0

or 
info@northgowergrains.com  
 

Local Cash Bids
 
CORN
  North Gower Grains
Futures Price Basis Cash Price Converted Price Futures Change
 Spot  424'6s
-4'6
 Harvest 2024  459'2s
-4'0

SOYBEANS
  North Gower Grains
Futures Price Basis Cash Price Converted Price Futures Change
 Spot  1151'2s
10'4
 Harvest 2024  1139'6s
6'4

WHEAT, HRS (INCLUDES PROTEIN)
  North Gower Grains
Futures Price Basis Cash Price Converted Price Futures Change
 Spot  643'6s
-15'2
 Harvest 2024  654'4s
-14'6

WHEAT, SRW
  North Gower Grains
Futures Price Basis Cash Price Converted Price Futures Change
 Spot  557'6s
-18'4
 Harvest 2024  569'6s
-17'0

WHEAT, HRW (INCLUDES PROTEIN)
  North Gower Grains
Futures Price Basis Cash Price Converted Price Futures Change
 Spot  557'6s
-18'4
 Harvest 2024  569'6s
-17'0

Price as of 03/01/24 05:49PM CST.
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