Wittal: USDA report expected bullish on corn, beans

June 9 — U.S. financial markets were mixed again today but the U.S. dollar fell over a full cent, which certainly brought some interest back into the grains from a buyer’s perspective.

The Canadian dollar closed up 1.46 cents at US90.91 cents today. This held canola back from making any gains even though a loss of acres due to frost in Western Canada is a real concern and with it being pretty much too late to reseed at this point, canola futures should have good support at these levels.

The Dow Jones June quote closed down 14 points today at 8,755. Crude oil finished up $1.92, closing at US$70.01 per barrel.

Corn finished up seven to nine cents per bushel today, while beans finished up 10-25 cents per bushel.

Wheat finished up six to 24 cents per bushel on the various U.S. exchanges today, while Minneapolis July wheat futures ended up 24.6 cents per bushel.

Canola finished pretty much unchanged for the day with 30-cent-per-tonne gains and losses in some futures months. Barley finished unchanged at $168 per tonne.

The U.S. Department of Agriculture’s report is due out tomorrow and traders are anticipating it to be bullish for corn and beans and neutral for wheat, so on that they were aggressively buying in the markets today in anticipation of a further run-up in the futures after the report.

Feed barley prices continue to rise as drought concerns across the southern Prairies continue to build. Recent rains could change that if they are sufficient enough to offset the dryness that has prevailed for the past two months.

Canola basis levels remain aggressive for old- and new-crop and with the recent frost they will no doubt continue to remain so for some time, as companies jockey to secure stocks for sales.

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.

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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