December 10, 2009 Market Update
Outside markets rebounded a little today while grains were mixed after a lacklustre USDA crop production report. Financial markets finished up slightly with gold up $5.30 to close at $1125.80. The U.S. dollar was basically unchanged today and the energy sector was mixed with crude down and natural gas up slightly.
The Canadian dollar finished up .0033 closing at US.9522. The Dow Jones finished up 60 points closing at 10,390. Crude oil was down 13c today closing at $70.54 U.S./brl.
Corn was up 8 to 10c/bu. today as reports of snow in many regions has the trade believing that some of the crop will not get harvested this fall. Beans were off slightly, down 1 to 4.4c/bu. as the USDA report did not adjust the production for Brazil or South America as the trade was expecting due to reports of a better-than-average start to the growing season in those countries. Weekly export numbers for beans were well above expectations so that helped support beans.
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Wheat markets were mixed as the Chicago feed wheat followed corn upward 1 to 2.6c/bu. and the Kansas and Minneapolis markets fell slightly -1 to -3.2c/bu., on lower-than-expected weekly export numbers.
Canola was mixed today from down $2.40 to up $.20/t and barley is down $1/t at $159/t. With the USDA not adjusting the production numbers upward for the Brazilian and South American crops you can be assured that the next report will be watched with much interest if growing conditions there continue to remain as good as they currently are.
Any upward revision in production will no doubt send U.S. bean futures and canola lower, so buyers are no doubt going to be a little less aggressive bu.ying over the near term waiting for just that to happen.
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.
