Jan. 5 — Outside markets were a little more subdued today on the heels of an impressive Monday rally. Gold is showing little to no change and crude oil is up, but other than that, markets are mixed today as it seems the trade is rather quiet with little follow-through on yesterday’s rally.
The U.S. dollar index rose one 10th of a cent today, while gold closed up 40 cents at $1,118.10. The Canadian dollar closed up 0.22 cents at US96.17 cents today.
The Dow Jones closed down 45 points at 10,540 today.
In the energy sector, crude oil closed up 26 cents at US$81.77 a barrel.
Corn closed unchanged to up 0.6 cents a bushel today, while beans closed up one to three cents a bushel.
Wheat markets closed down 3.2-8.4 cents a bushel today; Minneapolis March futures closed down 4.6 cents a bushel today.
Canola closed mixed, up $3.30 to down $1.10 per tonne today.
Western barley closed unchanged at $160 per tonne.
U.S. grains were mixed today, as some private industry reports have come out increasing the Argentine corn and bean crops due to the adequate rains and good growing conditions so far, which will act as a bit of a damper on U.S. grain futures in the short term.
Canola was mixed today as it tried to followed beans higher, but a climbing Canadian dollar didn’t help matters, so futures floundered at the close.
Barley did not trade again today, on reports of surplus DDGs (dried distillers grains) out of the U.S. being offered at discount prices to move the inventory. No doubt that will impact feed barley values here, especially with a rising Canadian dollar which will make DDGs look attractive to feeders north of the 49th.
The need for cash and wanting to check the bins has spurred a number of producers to deliver canola to elevators. If this continues it could pressure canola futures down in the short term.
If you’re thinking of delivering unpriced canola to the elevator or are wanting to sell some for delivery soon, you may want to look at doing it sooner than later, as there are still some attractive basis levels out there for February/March delivery. If deliveries pick up, as they are expected to over the next couple of weeks, you can bet basis levels will widen out as grain companies get their fill of canola.
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.