Nov. 12 — Financial and energy markets lost momentum and took some big losses on the day, largely due to profit-taking from the speculative side of the markets.
Even with the negative tone from those outside markets, U.S. grain markets were led by solid gains in the beans today. The continued drag of harvest is helping to support the beans right now. U.S. corn and wheat prices seem to be overvalued in world markets right now, as was evident with a recent large wheat sale to Egypt that the U.S. lost on price to Russia.
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Entomologist tests trap crops and marigolds to repel flea beetles at an Ag in Motion
An Agriculture Canada entomologist is experimenting with trap crops and marigolds at an Ag in Motion demonstration cropplot
Gold futures fell back a little today but still closed above the $1,100 mark.
The U.S. dollar was up over half a cent today. The Canadian dollar closed down 0.77 cents today at US94.8 cents.
The Dow Jones December quote closed down 87 points at 10,172 today.
Crude oil closed down $2.34 per barrel today at US$76.94.
Corn closed down 3.4-4.6 cents a bushel today, while beans closed up 14.2-18.4 cents a bushel.
Wheat futures were unchanged to down 3.2 cents a bushel today; Minneapolis December wheat closed down 2.2 cents a bushel.
Canadian canola futures were up $1.90-$5.90 per tonne today.
November Western barley futures closed up 60 cents per tonne at $175.60 today.
Cautious
I spent the morning at the Agri-Trade show in Red Deer and visited with many industry reps and producers alike.
The mood overall is cautious, as some producers are still trying to wrap up harvest and are experiencing grain going out of condition in their bins at a time when prices continue to drop, so needless to say they are a little disillusioned at the moment. Producers are happy for the quality and quantity of this year’s harvest overall when you look back to midsummer and how things looked at that time.
There is a lot of tire-kicking going on but very little if any buying of iron happening right now.
A lot of producers still haven’t had the time to sit down and pencil out how this year is going to end up for them as they wait for details from crop insurance as to what they may receive for a payment on the spring price endorsement program, if they chose that option this spring. The recent drop in grain prices over the last two months could mean some rather large payments may be forthcoming.
That could certainly change some producers’ mood and encourage them to reinvest in some new iron.
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.
