Sept. 1 — Global equity markets continued to struggle overnight, which pulled the Dow Jones sharply lower, and that started a cascading effect in most U.S. markets today as non-commercial traders (speculators) got nervous and started to liquidate positions in most markets, making the losses even greater.
Crude oil continued to fall, and that then filtered over into the grain markets, where beans started to experience some liquidation pressure and wheat and corn followed suit and ended the day with double-digit losses across the board.
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The U.S. dollar climbed up six-10ths of a cent today. The Canadian dollar closed down 0.94 cents at US90.53 cents.
The Dow Jones September quote is down 191 points at 9,295.
Crude oil is down $1.91 per barrel, at US$68.05.
Corn closed down nine to 14 cents a bushel today; beans closed down 15-86 cents a bushel.
Wheat futures closed down 10-17.2 cents a bushel on the various U.S. exchanges. Minneapolis September wheat closed down 17.2 cents a bushel today.
Canola closed down $7-$10.40 per tonne today.
October Western Barley dropped $3.40 per tonne, closing at $100 per tonne. November futures are down $4.60 at $138 per tonne.
CWB program updates
The CWB has discontinued the 80 per cent early payment option (EPO) for the CWRS, CWHWS and CWAD classes of wheat.
The recent drop in the pool return outlook (PRO) made it so that the 80 per cent EPO value had very little or no net value advantage over the current initial price for those classes of grain.
It would be of no benefit for producers to use the 80 per cent EPO, as the initial price, which is guaranteed by the government, is higher than the EPO value. It would be a waste of money for producers to sign up an 80 per cent EPO for those classes so the CWB decided to terminate them at this time.
The 90 per cent and 100 per cent EPO contracts are still available for producers to sign up if they so choose.
The 2009-10 fall cash advance program starts today (Sept. 1). The per-tonne values this year are set at wheat, $100; durum, $110; barley, $60; and malting barley, $87.
For complete details please refer to the CWB website or contact your local grain dealer.
Another important thing to remember is that you must have an active CWB permit book and a delivery contract signed up before you can receive payment for any wheat that you may deliver this fall.
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.
