|Corn CBOT||Mar||3.84¼||↓ 7¼ cents|
|Soybeans CBOT||Jan||9.47¼||↓ 9 cents|
|Wheat CBOT||Mar||5.52¾||↓ 7½ cents|
|Wheat Minn.||Mar||5.47¾||↓ 10½ cents|
|Wheat Kansas||Mar||4.80||↓ 5¼ cents|
|Oats CBOT||Mar||2.99||↑ 1 cent|
|Canadian $||Mar||0.76765||↓ 23 points|
Corn production in Brazil, namely the Rio Grande do Sul, have been hit with drought. While it is too early to know the outcome of this, yield estimates have begun to be revised downwards. This area of Brazil grows corn in their summer months while most of the corn grown in other parts of Brazil is over the winter months. Livestock producers in Brazil recognize the importance of corn grown in the Rio Grande Do Sul area as this is the first corn crop available each year for their feed requirements.
There is optimism that China will accelerate purchases of U.S. farm goods, especially soybeans, as both the U.S. and China are expected to sign the Phase 1 Trade Deal next week.
China has imported fewer South American soybeans in 2019 versus 2018 in part due to some slight easing of trade tensions between the U.S. & China, and due to reduced feed demand due to African Swine fever. The Chinese market is as important for South America as it is for North America especially since Brazil continues to grow record acres of soybeans and will need export markets to ship to.
The North American wheat flour market has seen an increased demand in both food and non-food sectors, as well as growth in volume to approximately 11 million tonnes in 2018. A strong domestic market certainly helps when export markets continue to be dominated by Russian and other producers in the Black Sea region.
A USDA report is due out on January 10. This will provide supply and demand updates for the major U.S. crops as well as information on the U.S. winter wheat plantings.
Futures markets have been trending higher the last half of December, although the market seems to be giving back those gains early in the new year. With a large Ontario crop planted, it may be a good time to check local bids.
2019 cash prices for January 8, 2020, at the market close, are as follows:
SWW at $278.94/mt ($7.59/bu), HRW at $286.12/mt ($7.79/bu),
HRS at $247.83/mt ($6.74/bu), and SRW at $274.15/mt ($7.46/bu).
We currently offer 2020 and 2021 harvest prices as well, please call 1-800-265-0550 for more information.
Todd Austin is the manager of marketing for Grain Farmers of Ontario.