Sept. 15 –– Financial and energy markets showed steady gains today, which helped set the tone for the day for other markets as well.
Forecasts for frost for next week seemed to catch the interest of traders. Add to that renewed buying interest in the grains and you have yourself a mini-rally as we saw today.
Concerns in the U.S. that there would still be significant damage to a portion of the crops if a general killing frost were to happen within the next two weeks sparked renewed buying interest in all grains today. Corn and beans took the lead and wheat jumped on the wagon for a ride-along.
Canola was tempered by the jump in the Canadian dollar so we only saw a modest increase to futures values compared to what beans did.
The U.S. dollar closed down almost two-10ths of a cent today; the Canadian dollar closed up almost a full cent at US93.3 cents.
The Dow Jones September quote finished up 51 points at 9,662.
Crude oil is up $2.07 a barrel at US$70.93.
Corn closed up 24-29 cents a bushel today; beans closed up 42-51 cents a bushel.
Wheat futures closed up 14-18.6 cents a bushel on the various U.S. exchanges. Minneapolis September wheat closed up 14.6 cents a bushel today.
Canola closed up $8 to $10.20 per tonne today.
October Western barley climbed $3.70, closing at $119 per tonne. November futures are up $5 per tonne, at $150.
Harvest reports from across the Prairies show rapid progress being made and producers on average report better-than-expected yields and quality to date.
Higher quantity and quality would be a real bonus this year, considering where prices have fallen, in order to help maximize per-acre returns.
Forecasts for frost next week across much of the northern and possibly into the central U.S. crop regions may be a pricing opportunity, as markets are already reacting to this news. Severity of the frost will be the real key to a sustained or short-term rally.
Be prepared to take opportunity from the markets if it presents itself.
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.