June 12 — The U.S. financial markets have ended the week mixed to down, with no real news to focus the markets either way. The U.S. dollar has jumped 0.7 cents today, which has tempered any optimism in the financial sector to end up the week.
Uncertainty in the markets led to profit-taking in crude after a strong week up, which sent a lot of traders to the sidelines in other markets heading into the weekend.
The drop in the Canadian dollar today should be positive for Canadian grain futures.
The Dow Jones June quote closed the week at 8,789, up 26 points for the week. The Canadian dollar closed down 1.7 cents at US89.41 centrs today — unchanged for the week.
Crude oil finished down 64 cents, closing at US$72.04 per barrel, up $2.46 for the week.
Corn finished down 10-16 cents per bushel today, down 19 cents for the week, while beans finished down 11-22 cents per bushel today, up 20 cents for the week.
Wheat finished down one to 10 cents per bushel on the various U.S. exchanges today. Minneapolis July wheat futures ended down 1.4 cents per bushel today — down 11 cents per bushel for the week.
Canola finished down $3-$5 per tonne for the day, and down $2 for the week. Barley finished down 70 cents per tonne, to close at $163.40, down $4.60 per tonne for the week.
Continued weather uncertainties still exist in both the U.S. and Western Canada that have markets on edge and uncertain as to a clear direction going forward.
A sharp drop-off of producer canola deliveries continues to help support canola futures.
Crop conditions and yield potential are very suspect right now and it will be a little while before a clearer picture emerges as to what they will be, so until then, markets are going to be real sporadic.
That’s all for this week. — 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.