Jan. 21 –– The U.S. dollar continued to climb another full cent today, which again had negative impact on gold, crude oil and financial markets. The Canadian dollar ended lower in response to the strong rise in the U.S. dollar, but it was only down a quarter of a cent.
Corn and beans were up slightly on the day, while wheat markets were mixed with Chicago and Minneapolis up a few cents and the Kansas markets down a couple of cents.
The market is expecting strong weekly sales and export numbers for beans this week, which should help support futures.
Corn and wheat are expected to fall below weekly sales and export targets yet again, which will continue to put pressure on those futures to try to entice new sales going forward.
The U.S. dollar index rose 1.059 cents today, while gold closed down $9.60 at $1,102.70 today.
The Canadian dollar fell a quarter of a cent to close at US95.24 cents today.
The Dow Jones March contract closed down 207 points at 10,350 today, while in the energy sector, crude oil closed down $1.66 at US$76.08 a barrel.
Corn closed up 2.2 to four cents a bushel today, while beans closed up four to 5.4 cents a bushel.
Wheat markets closed mixed, down 1.4 to up 4.4 cents a bushel today; Minneapolis March futures closed up 1.6 cents a bushel.
Canola closed up $3.60-$4.50 per tonne today.
Western barley closed down 50 cents at $149.50 per tonne.
Canola futures found support from a lower Canadian dollar and some renewed export buying, because of the lower dollar, helped canola to close with small gains on the day.
Pressures from the South American bean crop are building, as it is poised to come onto the market over the next few weeks. Canola pricing charts are still pointing lower, which will likely keep buyers reluctant in the short term and the futures under pressure.
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.
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.