Nov. 20 — Financial markets continued to be in a bad mood again today and closed with losses across the board, which also led crude oil to finish with losses on the day as well.
The U.S. grain markets were mixed with corn and wheat down again today while beans were able to hold onto small gains for the day and week. Canola followed beans upward and with the continued drop in the Canadian dollar, it was able to hold on and close out the day on the positive side.
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Gold was steady to up again today, closing at $1,146.80, up $30 over last week.
The U.S. dollar rose just over three 10ths of a cent today. It ended unchanged for the week. The Canadian dollar closed down 0.78 cents today at US93.34 cents, down 1.74 cents for the week.
The Dow Jones December quote closed down 12 points at 10,303 today, up 61 points over last week’s close.
Crude oil closed down 74 cents a barrel today at US$76.72, up 37 cents a barrel from last week.
Corn closed down two to four cents a bushel today, up six 10ths of a cent for the week. Beans closed up one to seven cents a bushel today, up 59 cents a bushel for the week.
Wheat futures were down two to 4.4 cents a bushel today. Minneapolis December wheat closed down 4.4 cents a bushel today, up nine cents a bushel for the week.
Canadian canola futures were up $1-$3 per tonne, today, up $16 this week.
January Western barley futures were up $2.50 per tonne, closing at $160 today, up $3.50 per tonne for the week.
Mixed weather, mixed markets and fluctuating currencies all contributed to this week’s little bump-in-the-road mini-rally — short and sweet and something you could have missed if you weren’t paying attention.
This type of market sentiment is going to carry forward into next week as weather is still a factor with harvest in parts of the U.S. Outside markets and currencies are going to continue to fluctuate with uncertainty as well, which will add further instability into the grains. When markets are like this it seems that the easiest path is the path of least resistance, which right now is sideways to down.
This weather is too good to be true! Take advantage of it and check or move some of your grain in your bins, as more problems are being reported every week with bugs and spoiling.
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.
