Grains are mostly higher in overnight trading:
Corn + 4 ¼ cents/bu (May @ 3.32)
Soybeans + 4 ¾ cents/bu (May @ 8.6 ¼ )
Chi Wheat – 8 cents/bu (May @ 5.47 ¾ )
Cdn $ +0.00460 (71.345 cents)
WTI Crude Oil +0.44/barrel (26.52)
Commodities and equities are generally higher in overnight trading, as optimism emerges that many major economies are now facing the worst of the Coronavirus pandemic, and that things should get better in the weeks to come. That assumption remains to be validated, but numbers released yesterday do suggest that social distancing is having a positive impact on slowing the rate of COVID-19 infections in the western hemisphere.
Corn is enjoying a nice bounce today off of multi year lows. No new business has been announced, but last night’s USDA Weekly Crop Progress Report did not include any corn seeding numbers, and with cool temperatures on the horizon in the 6 to 10 and 11 to 15 day windows, there is not likely to be a lot of progress on the corn planting front.
Wheat futures started the overnight session unchanged, but quickly saw selling come forward as the winter wheat crop ratings show that the crop is off to a good start in 2020. Actual good/excellent ratings of 62% for winter wheat were slightly better than expected, although most recognize that the USA winter wheat crop is in good shape. Wheat market will be looking for the USA to capture some of the large export wheat tenders that are currently being bid on.
The Canadian dollar is sharply higher today, and now sits a full 3 cents higher than it’s lows from March 19th. If optimism continues regarding global economic recovery from COVID-19, and IF energy prices continue to rally, then the Canadian dollar should continue to rally. Unfortunately, for Canadian farmers, that scenario will put added pressure on purchase basis levels.