Wittal: Markets await USDA production reports Thursday

Reports this week will be short and to the point as I am on a beach in Ixtapa and have limited Internet resources to do much for research beyond the basics, plus I want to get back to the sun and sand and cerveza as fast as possible. I will be back in my office next Wednesday, Dec 16.

Markets are looking a little depressed with limited or no news to help them out. 
Financial markets are down with gold leading the way and the U.S. dollar down 3/10th of a cent. Energy markets are also off today as are the grains. 

Corn was even to down 1.4c/b, beans down 15 to 17c/b, wheat was down 1 to 5.2c/b, canola closed down $4.40 to $5.00/t and barley is down $1/t.

The Canadian dollar finished down .0118 closing at US.9489. The Dow Jones finished down 54 points closing at 10325. Crude oil was down 1.95c today, closing at $70.67 U.S./brl.

Grains had losses across the board due to position squaring ahead of the USDA Crop production report due out tomorrow morning (Thursday). Speculation abounds as to where the USDA will peg South American and Brazilian soybean production in this report. Some are expecting a surprise with a higher-than-expected number which led to liquidation in all grains today.

Canola held its own but ended lower as the dollar was higher. Limited farmer selling helped to hold values from falling further. Canola is considered to still be priced cheaper than other oil sources but the rising dollar is keeping futures from moving up any further.

If there are any real surprises in the USDA numbers tomorrow, especially beans, that could put the U.S. grain markets in a free fall into the new year.
   — 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.

About the author



Brian Wittal

Brian Wittal has 30 years of grain industry experience and currently offers market planning and marketing advice to farmers through his company Pro Com Marketing Ltd.



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