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 18 — Financial markets showed solid gains today, which helped set the tone for U.S. grains as well.
Wheat started off mixed but then, as the day went on, showed some strength and finished with double-digit gains. Good weekly export numbers, along with continued seeding delays over the weekend, helped to push wheat up. Rumours that Egypt has quarantined another three boatloads of Russian wheat also helped to keep wheat strong, as this will now make U.S.-origin wheat more popular for export.
Beans found support from crude oil as it jumped $2.69 per barrel, and Egypt was in buying beans today, which also helped push beans up.
I would expect canola to play catch-up Tuesday, as today was a holiday and the trade in Canada was closed, but it could be limited due to the fast-rising Canadian dollar and the impact that will have on canola futures from an export perspective.
The Dow Jones July quote closed up 235 points today at 8,504, while the Canadian dollar was up 1.17 cents today to close at US85.97 cents.
Crude oil finished up $2.69, closing at US$59.03 per barrel for the day.
Corn finished up two to five cents per bushel today, while beans finished up 11-16 cents and wheat finished up 11-14 cents on the various U.S. exchanges.
It looks like there is still some weather market rally left in these markets.
I would expect Tuesday’s trade to be a little more subdued after the jumps we’ve seen today in the grains
We had snow all day today north of Calgary and rooftops are white so it will be a couple days before field work begins again here.
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.