Nov. 19 –– Financial markets were in a bad mood from the start and ended up with losses across the board. Gold was steady today with very little change, up less than a dollar on the day, closing at $1,141.90 on December futures.
The energy sector took its cue from the financials and ended down with fairly large losses on the day.
U.S. grain markets were mixed with corn and wheat down due to low sales and export numbers for the week, while beans were up due to larger-than-expected weekly sales and export numbers.
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Canola tried to follow beans upward today, but wasn’t able to maintain the momentum as no new news or sales were reported to help support canola. Even the falling Canadian dollar wasn’t enough to prop up canola futures, so it drifted lower and ended with small losses on the day.
The U.S. dollar rose just over a 10th of a cent today. The Canadian dollar closed down 0.49 cents today at US94.12 cents.
The Dow Jones December quote closed down 89 points at 10,315 today.
Crude oil closed down $2.12 a barrel today at US$77.46.
Corn closed down 1.6 to three cents a bushel today. Beans, meanwhile, closed up 1.4-12 cents a bushel.
Wheat futures were down 0.4 to five cents a bushel today. Minneapolis December wheat closed down 1.6 cents a bushel today.
Canadian canola futures were down 30 cents to $1.30 per tonne today.
January Western barley futures were unchanged, closing at $157.50 today.
Board contracts
The Canadian Wheat Board recently came out with its acceptance levels for the A series delivery contracts and also announced increases to the contract calls for deliveries.
Acceptance levels for CWRS wheat on the A series is 80 per cent, so if you signed up any CWRS on the GrainFlo program in Period 1, your acceptance is also 80 per cent. If you signed up in Period 2, 3 or 4, your acceptance is 100 per cent.
For CPSR, CPSW, CWRW, CWES, CWHWS and CWSWS classes they accepted 100 per cent.
For durum wheat they accepted 40 per cent on the A Series.
If you signed up durum in Period 1 on GrainFlo, the acceptance level is 50 per cent.
If you signed up in Period 2, 3 or 4 your acceptance is 100 per cent or until the tonnage limit is reached.
For further clarification visit the CWB website or call the CWB help line at 1-800-275-4292.
Yesterday the CWB opened up more delivery calls for some of the wheat classes.
For CWRS Nos. 1 and 2, high and low protein, they called for another 25 per cent, but it has to be dry: NO tough or damp grains allowed at this time.
For CWRS Nos. 3 and 4 they have called for the total 80 per cent to be delivered of dry, tough and damp grains.
No doubt they are doing this to allow for delivery of the late-harvested, tough, lower-grade CWRS to maximize blending with the dry Nos. 1 and 2 to maximize sales opportunities.
Calls for CPSR are now at 50 per cent for all grades and moistures.
Calls for CWES are at 100 per cent for all grades and moistures.
That’s all for today. — Brian
— Brian Wittal has spent over 27 years in the grain industry, including as an elevator manager and producer services representative for Alberta Wheat Pool, a regional sales manager for AgPro Grain and farm business representative for the Canadian Wheat Board, where he helped design some of the new pricing programs. He also operates his own company providing marketing and risk management advice for Prairie grain producers. Brian’s daily commentaries focus on how domestic and world market conditions affect you directly as grain producers.
Brian welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts. Contact Brian today.
