North Gower Grains

Our office is closed on Monday for Victoria Day.  The markets will be open.  If you want to make any contracts please call me on my cell phone at 613-880-2707.

Thursday was a poor negative day for our markets.  Spot corn closed down 13 1/4, spot soybeans closed down 36 1/2, harvest winter wheat closed down 17 1/2 and harvest spring wheat closed down 17 1/4.  In the overnight trade all of our markets remain on the negative side.  Oil closed up $0.15 yesterday at $101.17 per barrel.  It is stronger again this morning with it now trading at $103.51 per barrel.  Our dollar started out yesterday morning at $0.729 US and then trended lower going down to $0.727 US in the overnight trade.  It has come back up just a bit this morning with it currently valued at $0.728 US.

Soybeans led our markets lower yesterday as no new trade deal including our agricultural commodities was agreed to between the two Presidents.  China did not even confirm the previously agreed to purchases of 25 million tonnes a year of soybean purchases from the US going forward.  This number was mentioned by the US side as already agreed to however as far as anybody knows it is only a verbal agreement between the two sides that China has never publicly acknowledged.

Remember going into these meetings there were rumours/thoughts that China would possibly purchase corn and wheat instead of increased soybean purchases.  None of this did occur as it looks like speculative funds (that were gambling on this) ending up on the wrong side of the equation.

Maybe another big disappointment out of this meeting was that nothing really positive came out about ending the war against Iran.  It is thought that China could possibly help get Iran to agree with a peace plan.  If this is happening it sure is not being talked about very much.

Without any new trade agreement managed money were big sellers in our markets and prices went lower.  Even wheat prices pulled back after getting the bullish support earlier this week with the May WASDE report and much lower expected production this week.  It is somewhat nice to see this morning that our markets are not near as weak as yesterday however they still are on the negative side.

Friday’s thought:  Before you get frustrated with older people because of what they can’t do.  Stop and think of how frustrated they must feel because they can no longer do it!