Wittal: Speculative buying supports beans, wheat

Nov. 17 –– Financial markets were quiet or down a little today as the U.S. dollar rallied back to regain what it lost yesterday. Gold was steady to unchanged on the day.

The energy sector was steady, with crude up just slightly on the day.

The U.S. grain markets were mixed, with corn down slightly and wheat and beans up modestly.

The U.S. dollar regained the half a cent it lost yesterday; the Canadian dollar closed down 0.51 cents today at US95.03 cents.

The Dow Jones December quote closed up 30 points at 10,398 today.

Crude oil closed up 24 cents today at US$79.14 per barrel.

Corn closed even to down 1.4 cents a bushel today. Beans closed up 14.2 to 20 cents a bushel today.

Wheat futures were up seven to 14 cents a bushel today. Minneapolis December wheat closed up 7.6 cents a bushel today.

Canadian canola futures were up $3.60 to $4.60 per tonne today.

January Western barley futures closed down 50 cents per tonne at $157.50 today.

Speculative buying in the bean and wheat markets is what pushed these markets higher today.

Rains in the Midwest have helped to push the speculative position, as continued harvest delays in beans mean more uncertainty and provide opportunity for profits if the weather should persist.

The drop in the Canadian dollar helped canola look more attractive but underlying concerns with China have kept buying to a minimum.

The Canadian Food Inspection Agency says it may have come up with a new test it can use for detecting blackleg in canola shipments destined for China. CFIA is working to refine the process to speed up the turnaround time for doing the test.

The original blotter tests usually took 20 days for a turn around and the CFIA hopes that with this new PCR technology it can reduce the turn around to 10 days.

This is a good step toward alleviating the concerns that the Chinese have and hopefully allow canola exports to China to resume with confidence.

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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