Weekly Market Update. Thanks for tuning in!

Friday, August 5, 7:15 a.m. – Yesterday was a nice positive day for our markets.  Harvest corn closed up 10, harvest soybeans closed up 46, harvest winter wheat closed up 18 3/4 and harvest spring wheat closed up 19.  In the overnight trade all of our markets are back on the negative side.  Oil closed down $2.12 yesterday at $88.54 per barrel.  It is down again this morning with it now valued at $88.30 per barrel.  Our dollar started out yesterday morning at $0.780 US and has trended lower since then.  This morning it is currently valued at $0.776 US. 
 
Soybean meal demand led our markets higher yesterday.  The nearby demand for soybean meal in the US continues to drive the soybean market.  There were also rumours yesterday of China purchasing some soybeans from the US but nothing formal was announced.  This rumour was somewhat surprising with the current increased tensions between the two countries after Speaker Pelosi visited Taiwan. 
 
The wheat market also bounced up yesterday.  Speculative funds are now holding their smallest long position (looking for prices to go up) in the last 7 years.  They have been steadily liquidating this position this summer and that has helped to drive wheat prices down to their current levels from the highs made earlier this year.  With the decreased long position further liquidations will not have as much effect on the market and therefore this market is getting back to trading on true supply / demand fundamentals.  Of course these fundamentals get affected by outside activities like the invasion of Ukraine and how that continues to affect the supply side. 
 
It is looking a negative day in the markets today before the weekend.  Weather continues to be a very important factor and with rain forecasted for much of the Central and Eastern Corn Belt this is putting some pressure on prices.  The situation in China and Taiwan remains on the main screen with concerns on how this could affect grain trade between US and China.  It is looking like a few more boats are getting out of Ukraine this week which is also negative for prices.  All in all the market just seems to be looking for reasons for prices to be down today.
 
Friday’s thought: It is okay to talk to yourself and okay to answer yourself.  But sad when you have to repeat what you said because you were not listening!
  

Please call Geoffrey Guy at 613-880-2707 or Delores Foster at 613-880-7458 or Bob Orr at 613-720-1271 or Bob Smith at 613-371-7460 if you would like prices for crop you have stored on your farm.  Prices quoted herein are for product at our elevator.