Grain Market Commentary

Weekly commentary is written by Marty Hibbs, Grain Farmers of Ontario.

All of these reports include a weekly Ontario Wheat Market Commentary for the current season. Ontario Corn and Soybean Commentaries are also included; reflecting the overall Grain Farmers of Ontario perspective.

Grain Market Commentary for March 15, 2017

March 15, 2017

Commodity Period Price Weekly Movement
Corn CBOT May 3.63  09 cents
Soybeans CBOT May 9.98  13 cents
Wheat CBOT May 4.36  11 cents
Wheat Minn. May 5.40  09 cents
Wheat Kansas May 4.47  19 cents
Chicago Oats May 2.57  13 cents
Canadian $ June 0.7510  0.75 points

Corn

The March contract is now expired leaving May as the lead month. A pullback is evident as we see prices ready to test our support levels after receiving a red sell signal on the short term indicators after the USDA report. First support on the May contract is seen at $3.50 and again each ten cents lower until support is found. A rally from this level could move us back toward the $3.70 - $3.75 overhead resistance. Our major trend-line is still around the $4.00 mark and it’s this line that we need to negate before we can get this market to turn positive in the long term. Repeating last week’s outlook, a pullback of a larger scale could see the May contract challenge the $3.40 and possibly even the $3.30 support levels. Short term indicators are neutral, but the main trend is still down.

Soybeans

Our red sell signal from February 22 is still intact and the May contract has dropped thirty cents to date. More of a concern is our one year old trend-line which is our major support and it needs to stay above $9.85 on a close basis. The May contract will probably continue to find downward pressure if so, there is a chance we could see much lower prices coming into the spring on the lead month contract. Short term indicators have all turned negative as indicated in last week’s commentary and the main trend is still down.

Wheat

With the March contract expiring March 14, there seems to be some temporary relief from downward pressure on prices. While still in a corrective mode we are now due for a bounce. Initially we have overhead resistance at the $4.40 - $4.45 level on May. The short term indicator flashed a sell signal this week suggesting this pullback could see lower prices in the coming weeks.

Short term indicators are now negative and the primary trend is still down.

Harvest 2017 crop cash prices as of close on March 15, 2017
SWW @ $205.96/MT ($5.61/bu), HRW @ $205.96/MT ($5.61/bu),
HRS @ $230.90/MT ($6.28/bu), SRW @ $205.96/MT ($5.61/bu).

USDA Reports

The United States Department of Agriculture publishes monthly reports that may be of use to our members.

Report Released Link
Crop production July 12, 2017
World agricultural supply and demand estimates July 12, 2017

Archive

Grain Market Commentary for July 19, 2017
7/19/2017 4:00 PM | GFO.ca
Grain Market Commentary for July 12, 2017
7/12/2017 4:00 PM | GFO.ca
Grain Market Commentary for July 5, 2017
7/5/2017 4:00 PM | GFO.ca
Grain Market Commentary for June 28, 2017
6/28/2017 4:00 PM | GFO.ca
Grain Market Commentary for June 21, 2017
6/21/2017 4:00 PM | GFO.ca
Grain Market Commentary for June 14, 2017
6/14/2017 4:00 PM | GFO.ca
Grain Market Commentary for June 7, 2017
6/7/2017 4:00 PM | GFO.ca
Grain Market Commentary for May 31, 2017
5/31/2017 4:00 PM | GFO.ca
Grain Market Commentary for May 24, 2017
5/24/2017 4:00 PM | GFO.ca
Grain Market Commentary for May 17, 2017
5/17/2017 4:00 PM | GFO.ca
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