Monday, August 19, 2019, 7:35 a.m. – Friday was a nice positive day for our markets. Harvest corn closed up 9 3/4, harvest soybeans closed up 9, harvest spring wheat closed up 3 1/2 and harvest winter wheat closed up 1 3/4. In the overnight trade all of our markets are unfortunately back on the negative side. Oil closed up $0.30 on Friday at $54.87 per barrel. It is stronger again this morning with it now sitting at $55.26 per barrel. Our dollar had a low Friday morning of $0.751 US and then climbed for most of the day hitting a high of $0.754 US before closing out for the weekend at $0.753 US. This morning it is a bit stronger with it currently valued at $0.754 US. The corn market lost 54 cents last week before the small rally on Friday. With the surprise announcement on Monday for both acreage and yield managed money was caught on the wrong side of the market and most likely liquidated much of their long position last week. The small rebound on Friday looks like it was just a brief stop gap before prices fall further down today. As I talked about on Friday it is currently hard to find any strong reason on why corn prices should turn higher. Last week DTN did a Digital Yield Tour over much of the US growing regions. Their data reports a national corn yield of 163.2 bushels per acre which is 6.3 bushels per acre lower than the USDA reported last Monday. Their projected soybean yield of 44.2 bushels per acre is 4.3 bushels per acre lower than the USDA. These numbers will just add to the debate on where the yield will end up this year. Acres are now confirmed and yield will remain the big variable for trading purposes until the crop is harvested. On the trade front President Trump said over the weekend that the US is “doing very well with China” and that talks between both sides are continuing. He also indicated that he is not ready at this time to sign a deal. The drama in these trade talks never seems to end. Unfortunately this same drama can have and has had a major effect on our markets, especially soybeans.
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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