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Wittal: Profit-taking continues

Oct. 27 — Financial and energy markets tried to rebound and were able to recover some ground on the day, but not with any real confidence, which could mean further downside as the week goes on.

Continued profit-taking in the U.S. grain markets has taken hold as traders look to extract maximum profits out of the recent weather rally. Wheat futures took solid double-digit losses again today as there was nothing to stop the profit-taking from dragging futures lower.

The U.S. dollar was up just over a 10th of a cent today. The Canadian dollar closed up 0.37 cents today at US94.04 cents.

The Dow Jones December quote closed down six points at 9,835 today.

Crude oil closed up 87 cents a barrel today at US$79.55.

Corn closed down one to 7.2 cents a bushel today, while beans closed down three to 13 cents a bushel.

Wheat futures closed down 19-24.2 cents per bushel today. Minneapolis December wheat closed down 19.2 cents a bushel for the day.

Canola closed up 30 cents to $4.60 per tonne today, supported by new rumoured export sales.

November Western barley futures closed up $2.50, at $164.50 per tonne.

Some harvesting took place the past three or four days, but the canola coming off was 12 to 13 per cent moisture, which could cause some real problems if stored for any length of time. Drying or aeration are the best options if you are planning on holding the grain for blending reasons.

If the weather warms up at all, be sure you are checking the bins weekly and turning the grain, as it can heat very quickly, and it’s too late once you notice it from the outside of the bin. 

I spent one winter drying canola that was combined in late November after several hard frosts and three snow storms. We ended up having to run it through the dryer twice, and some of it three times, before we were able to deliver it to the elevator in January. The weather was cold, but the canola in the bins took on a life of its own and would start to heat up within a week of when we put it back in the bins. Green and frozen seeds were causing all kinds of problems in the bins.

Keep a close eye on your bins!

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.

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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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