Oct. 16 –– A rather mixed week in the grain markets as weather dominated, keeping the trade on edge waiting to see what the next day was going to bring.
Financial indexes ended with losses today but were up slightly for the week overall.
The U.S. dollar rose one-10th a cent today and closed out the week down nine-10ths of a cent. The Canadian dollar closed down four-10ths of a cent today at US96.35 cents, down three-10ths of a cent from last week.
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The Dow Jones December quote closed up 40 points at 9,924 today, up 115 points for the week.
Crude oil closed up 95 cents a barrel today at US$78.53, up $5.26 a barrel over last week’s close.
Corn closed unchanged to down 1.2 cents a bushel today, up 10 cents a bushel for the week.
Beans closed down four to six cents a bushel today, up 13 cents a bushel for the week.
Wheat futures were down two to 8.2 cents a bushel today. Minneapolis December wheat closed down 4.6 cents a bushel for the day, up 22 cents a bushel for the week.
Canola closed unchanged to up $1.70 per tonne today, up $5 per tonne for the week.
November Western barley futures closed up $1 per tonne at $151, unchanged for the week.
Weekly export sales numbers for corn and beans were below weekly U.S. Department of Agriculture targets, while wheat came in above the targets.
Activity in the grains was rather quiet for a Friday, as most traders stepped to the sidelines once they had their positions squared up for the week. There’s uncertainty about just how much harvest may get done over the weekend. Traders are opting to sit this one out, waiting to see what Monday will bring.
Concerns in part of the U.S. that the delayed corn and bean harvest may not allow farmers to plant winter wheat this fall could end up being a positive for wheat prices. Winter wheat is by far the largest acreage of any wheat seeded in the U.S. and if the winter wheat doesn’t get seeded this fall, then those producers will more than likely plant corn or beans on that ground next spring, meaning fewer wheat acres and less production, which should hopefully mean higher wheat futures going forward.
It will all depend on how the harvest goes the next couple of weeks, as the crop insurance deadline for seeding winter wheat in the U.S. is the middle of November.
There is always something new out there that can have an impact on grain prices, perceived or real. The trick is to be prepared to take advantage of the situation if and when an event happens that can put money in your pocket.
That’s all for this week. — 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.
