Dec. 30 –– Very thin trading activity was again the focus on the markets today.
Gold closed down $5.50 at $1,092.50 today. The U.S. dollar index closed up eight 100ths of a cent today while the Canadian dollar closed down 1.11 cents at US94.75 cents today.
The Dow Jones closed down two points at 10,485 today.
In the energy sector crude oil closed up 41 cents at US$79.28 a barrel.
Corn closed down 2.4-3.4 cents a bushel today, while beans closed down 1.6 to three cents a bushel today.
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Wheat markets closed up 1.4-3.6 cents a bushel today; Minneapolis March futures closed up 2.2 cents a bushel today.
Limited buying interest sent beans and corn lower, while wheat was able to hold onto small gains as traders tried to close out some of their outstanding contracts before year-end.
Canola struggled as the Canadian dollar started the day out higher, but soon fell and ended down over a full cent which helped canola struggle back to basically unchanged on the day.
Reviewing basis levels, I see that some companies have lowered their basis for March through May in an effort to secure stocks for deliveries in those months. Currently there are basis levels in the -$3 to -$7 per tonne range being offered in the Calgary area for March through May. Do some investigating and if you need to sell more canola in the new year, you may want to consider doing some basis at these levels.
A reminder to check your bins again as the weather is expected to warm up over the next couple of weeks and heated grain has been unfortunately an all-too-often occurrence so far this winter.
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.
