July 29 — Equity markets started off good but soon turned negative as the U.S. dollar found some strength and traded up over half a cent today.
The Canadian dollar dropped back 0.917 cents to close at US91.7 cents.
The Dow Jones September quote closed down five points at 9,045.
Crude oil closed down $3.88 at US$63.35 per barrel.
Corn was mixed, down 2.2 cents per bushel to up 0.2 cents per bushel today. Beans ended mixed as well, down 11.2 cents per bushel to up three cents per bushel today.
Wheat closed down 2.2-5.2 cents per bushel on the various U.S. exchanges. Minneapolis September wheat futures closed down 2.2 cents per bushel today.
Canola closed up $1.40-$3.20 per tonne today.
Barley closed down $4.10 at $140.40 per tonne.
One cargo of beans was confirmed to be sold to China yesterday and a second didn’t happen because the asking price was a little too high for their liking.
The trade is starting to focus on the upcoming Aug. 12 U.S. Department of Agriculture crop report that will bring out the first in field yield estimates for corn and beans.
Currently, the Wheat Quality Council crop tour in the U.S. is finding yields a little better than first anticipated. Final yield estimates area expected to be released Thursday afternoon or Friday morning.
Canola will continue to be under pressure the remainder of this week for a few reasons:
- The continued high Canadian dollar and the drop in crude oil futures.
- Beans have had a hard time the past couple of sessions, with double-digit losses.
- This is also a long weekend for Canadian markets, with Monday being a holiday in Canada but not the U.S., so no doubt canola futures will continue to slide in anticipation of continued good growing weather this coming weekend and the bearish tone in the U.S. markets.
Tuesday will be catch-up day for Canadian grain futures, good or bad.
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.