Wittal: Beans keep negative influences at bay

Our online grain markets columnist Brian Wittal 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.

May 21 — Financial markets were on the defensive today and this started to set the trend for grains, as they moved lower as trade opened this morning.

The Canadian dollar pulled back and crude also gave back some of its recent gains.

Beans were able to fight off the negative influence from crude and the Dow Jones, as strong weekly export numbers showed that buyers are still looking to buy.

Canola finished down slightly due to crude falling and also due to demand, both domestically and for export, falling off gradually the past few weeks. The recent run in the Canadian dollar has pushed canola into a position of being overpriced compared to other oilseed crops and with the drop overnight in palm oil markets, canola was forced to move lower to stay competitive.

Weekly export numbers for wheat were down and this continues to build up carryover stocks in the U.S., which weighed on the wheat markets today. Concerns of continued seeding delays are keeping markets steady for now.

The Dow Jones July quote closed down 130 points today at 8,292. The Canadian dollar was down 0.26 cents today to close at US87.71 cents.

Crude oil finished down 99 cents, closing at US$61.05 per barrel for the day.

Corn finished unchanged to down two cents per bushel today; beans finished up one to nine cents. Wheat finished up two cents to down five cents per bushel on the various U.S. exchanges today,

Canola finished down $1 to $2 per tonne for the day and barley finished up $4.50 per tonne to close at $155.

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.

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