Feb. 10 — The U.S. Department of Agriculture’s report held no big surprises and overall it was seen as neutral for beans and wheat and slightly negative for corn.
Financial markets fell today due to mixed response to the U.S. financial aid package being proposed.
The grain markets started the day off with a positive tone but with no real news or surprises from the USDA report to push things further, traders started to lose interest and the grains lost ground on the day.
Crude oil started off with good gains of $2 a barrel but then fell hard to finish $2 a barrel down, closing at US$37.55, and that pressured oilseed markets down.
Corn was down two cents a bushel, beans were down four to nine cents a bushel and wheat was down six to nine cents a bushel. Canola was down $1 to up $2 per tonne and barley finished down $2 a tonne for the day.
The Canadian dollar is down US1.95 cents, closing at US80.1 cents, and that helped canola hold level for the day.
We’re going to continue to see marginal and sporadic trading in the grains over the next couple of months, as the markets try to find new sales opportunities through price discovery to help balance supply with demand going into new-crop.
Weather rallies will be common occurrences and should be viewed as pricing opportunities for old- and new-crop grains.
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 a grain producers. He welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts.