PEI Grain Elevators

PEI GEC Update

New crop soybean contracts are at $ 397 / mt  fob the GEC elevators

 

Price is subject to confirmation at time of call.
More Trump effect on the markets . ( Because of the possible shutdown of congress by the goverment.)
 A struggling U.S. dollar this week has lifted  commodity prices across the board, and considering the continued need for export sales progress, the currency’s prospects will continue to be influential to grain prices. The lower SA currency stole away some of the usual export volume from the US in December.
Export numbers are ok , but not great and the weather issues in SA are not exciting to traders at this time due to high carryout numbers on all commodities. The Can $ is currently at $ .80475 at this time.
Locally Grains are moving at a steady pace off farm to customers and prices are trading sideways as imported cheap Corn is keeping a lid on the market .

PEI GEC Update

Soybeans managed to post a fairly firm reversal after the USDA stats, however the numbers were really not supportive. The 2017 US bean crop estimate was trimmed slightly, but a larger drop in the export estimate, where 65 million bushels was reduced. Ending stocks were raised by 25 million bushels to 470 million, which was very close to expectations.

USDA WHEAT stats were negative. Winter wheat acres did not drop off as expected. HRW was down about 300,000, but it was expected down a million. SRW acres were up 250,000, versus an expected drop of 150,000, so total winter acres are about even with last year.

USDA stats were a bit negative, with US production in 2017 edged a little higher, and US and world ending stocks higher than expected.
Any price strength will require some SA weather concerns to build and the bigger the problem , the bigger the reaction.

Update

A quiet morning in the markets so far. All crops are down off the highs of a few weeks ago.

The next report due out is the USDA S&D revisions at 11:00 CT today – traders expecting the soybean ending stocks estimate to edge a little higher. Soybeans are staying under some pressure, with some Argentina rains in the forecasts, and also rain expected into S Brazil which will help with early growth.

The Brazil soybean crop is estimated at 109.2 mmt, down from last year’s huge 114.1 mmt crop, but still a large crop. The Brazil corn crop potential at 92 mmt down from last year’s big 97 mmt crop, Still very big!

Soybeans have come down 30+ cents in the past few days. Might find some support soon, as some degree of SA weather nervousness will persist.

Brent Crude prices have surged $4.50 higher over the past few days, nearing the $66 mark.  Will the Can $ gain strength from this is the question? It is currently sitting at $ 77.850.

New crop soybean contract price at $ 410 / mt  for the GEC elevators.

Price is subject to confirmation.