North Gower Grains

Friday was a mostly positive day for our markets.  Spot corn closed up 1/4, spot soybeans closed up 3 1/2, harvest winter wheat closed down 7 1/4 and harvest spring wheat closed up 3 3/4.  In the overnight trade all of our markets are on the positive side.  Oil closed down $8.58 on Friday at $82.59 per barrel.  It is stronger in trading this morning with it now recorded at $87.56 per barrel.  Our dollar traded between a low of $0.729 US and a high of $0.732 US on Friday with it closing out at $0.730 US.  It is a bit stronger this morning with it currently valued at $0.731 US.

Last week corn ended positive on the CBOT for the first week in four weeks.  Prices have been pulled lower lately with the market focusing on some negative for prices information.  Firstly the large carryout stocks in the US continue to be in the news even with stronger than expected exports this year.  Secondly the much larger than projected corn crop coming out of Argentina is going to compete with the US on the export market.  Thirdly the safrinha corn crop in Brazil was planted into mostly favourable conditions and is currently looking good.  Fourthly, uncertainty about the acres that will be planted in the US this year remains a question mark with the latest USDA projections showing more than the marketplace was looking for.  Finally, competition for export markets by Ukraine continues to hinder world prices.  All in all it was easy for prices to go lower as the market continues to look for reasons for it to rally.

Soybean prices have traded for the last month within a 20 cent range.  It seems this market is looking to see how the relationship between President Trump and President Xi is affected by the current war against Iran.  Remember China was Iran’s largest crude oil customer before the war and is also the largest purchaser of soybeans from the US.

Wheat prices are being supported by the continued lack of rain for much of the US HRW wheat.  Although the current forecast is showing rain for later this week we all know that weather forecasts can change.  As we noted last week support in the HRW wheat market does fall over into our SRW wheat and HRS wheat markets.

Lots of turmoil over the weekend with news about the opening and closing of the Strait of Hormuz.  It seems that things are changing almost every hour with the latest being that peace talks are supposed to be occur tonight.

Last week was a mixed week for our markets with some basis improvements also affecting our prices.  Spot corn closed up $3 per tonne with harvest corn up $2 per tonne.  Spot soybeans closed down $3 per tonne with harvest soybeans down $1 per tonne.  Spring wheat was up $15 per tonne on the spot market and $14 per tonne for this year’s harvest.  Winter wheat was up $7 per tonne across the board.