The Good: The stock markets staged a major rally despite concerns about deteriorating U.S. – China relations. Dismal COVID-19 numbers from the southern U.S. were not enough to derail the rally with the Dow Jones Industrial Average up 2.3 per cent on the day. The TSX managed to move higher on the day as it finished up 1.7 per cent.
The Bad: Spring wheat prices remain in the doldrums as an improvement in weather has boosted production prospects. This has kept spring wheat prices in a tight US$5.20 to US$5.30 range as we get close to end of the growing season. Spring wheat harvest should begin in three weeks in southern North Dakota. The prospects of moving out the current trading range is low as the growing season advances without any threatening weather.
The Ugly: There was a sale of 1.762 million tonnes of corn to China announced this morning, which is the largest sale recorded since the reporting system began in the 1970’s. Although this sale is significant, the market was not impressed with the sale and finished down on the day. The total commitments for the U.S. corn crop are currently the slowest since the drought reduced crop of 2012-13. Although a nearly two million tonne sale to China is important, it is not enough to move the needle when it comes to prices for corn.