Wittal: U.S. long weekend seen short on market action

July 2 — U.S. markets showed some strength yesterday (July 1) so it was expected that Canadian markets would follow suit today. Overnight markets took on a negative tone, however, and that carried over into today’s trade.

Financial indicators were down across the board today, which pretty much set the tone for the rest of the markets.

Markets were expected to be quiet today as Friday (July 3) is a holiday in the U.S., part of the Independence Day long weekend. Continued improved growing conditions in the U.S. have the trade slowly backing away from the markets for the time being. There’s not a lot of new buying happening, so there’s no real reason to continue to push prices if the crops are doing good.

The U.S. Department of Agriculture will come out with its first crop production report next Friday, July 10, when it will give an update as to winter wheat production and a first forecast for spring wheat and durum yields for the year.

The Canadian dollar dropped 0.92 cents, closing at US86.13 cents, down 0.67 cents for the week.

The Dow Jones June quote closed down 223 points at 8,280, down 220 for the week.

Crude oil closed down $2.58 at US$66.73 a barrel, down $2.43 per barrel for the week.

Corn closed down six to 12 cents per bushel today, down 32 cents per bushel for the week.

Beans are down six to 15 cents per bushel today, up 42 cents per bushel for the week.

Wheat closed down six to 15.4 cents per bushel on the various U.S. exchanges. Minneapolis July wheat futures closed down 8.6 cents per bushel today, down 47 cents per bushel for the week.

Canola closed up $3-$6.10 per tonne today. Barley finished up 20 cents per tonne to close at $169.20 per tonne.

Canadian grains were up today on continued growing concerns and a falling dollar.

With tomorrow being a day off for U.S. grain markets, we can expect to see little or no trading happen on Canadian grains tomorrow. It is usually a good reason for traders to take a long weekend and this year it seems a lot of people are taking off from July 1 through July 6 for a real long weekend.

New-crop Canadian Wheat Board Permit books can be done online through its e-Services. It is fast and simple for anyone to do. You need to ensure you are signed up on e-Services though, or if you can’t remember your PIN number to access e-Services, call the CWB help line at 1-800-265-4292 and they will walk you through the process.

Once on e-Services you can also sign up delivery contracts or pricing contracts on line or access your cash advance account or grain deliveries to date whenever needed. Take some time and get signed up today and familiarize yourself with the service for future use.

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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