Dec. 2 — Outside markets were mixed today, with gold continuing to climb while financial and energy markets ended with losses on the day as the U.S. dollar rose a quarter of a cent.
Grains showed losses across the board as profit-taking was the focus of the day.
Gold closed up $12.80 at $1,212.50.
The Canadian dollar closed down 0.68 cents today at US95.12 cents.
The Dow Jones December quote closed down 22 points at 10,438 today.
Crude oil closed down $1.77 a barrel today at US$76.60 per barrel.
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Corn was down six to eight cents a bushel today. Beans were down 17-25.4 cents a bushel today.
Wheat markets were down three to eight cents a bushel today; Minneapolis December wheat futures were down eight cents a bushel.
Canadian canola futures were down $3.90-$11 per tonne today.
January Western barley futures were unchanged, closing at $160.50 per tonne today.
Well, the top may have come off of the markets today, as spec funds started doing some liquidation after trying unsuccessfully to push grains higher this morning.
With the Christmas holidays only weeks away you knew this was going to happen sooner rather than later: funds will endeavour to clear their positions and collect their profits as they prepare to sit on the sidelines through the holiday season and into the new year.
Beans ended with double-digit losses. The trade is becoming concerned that demand may be dropping off, based on the last couple of weeks’ lower export and sales numbers from the U.S. Department of Agriculture. Reports that South American crops are off to a good start may also temper future buying interest in the short term, which will no doubt force prices downward.
Statistics Canada’s crop report tomorrow morning will no doubt show increases in canola and wheat production over October estimates, which will also add negative sentiment into those markets.
Add all those things together and they tell me the funds are going to pull out of the markets now and wait until the new year before they re-enter, because there is just too much uncertainty out there right now with all of these issues floating around.
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.
