Trade tensions between the United States and China overshadowed the markets as the grain prices posted another week of sharp losses. The negative tone was set on Monday after U.S. President Trump indicated that he would raise tariffs on $200 billion of Chinese goods from 10% to 25%. The move to hike the tariffs was set in motion on Friday.
The prices lost more ground towards mid-week on weak U.S. export sales. Friday’s USDA supply and demand report added to the bearish news as projections for grain ending stocks for both the old and new crop marketing years were above the trade’s expectations.
On Friday, the old crop July soybean future closed at $8.09 per bushel, down 33 cents from the previous week. The new crop November future plummeted 31 cents to $8.33.
The Chatham-Kent (CK) high old price fell below the $10-level at $9.99, down 43 cents as the basis was 10 cents lower. The new crop price was $10.28, down 41 cents.
For the same period last year, the CK high old crop price was $12.56; the new was $12.71.
Corn also posted double-digit losses. The July future in Chicago closed Friday at $3.52, down 19 cents from the previous week. The new crop Dec. future was down 16 cents at $3.72.
The CK high old crop price was $4.57, while the new crop was $4.62. Last year, the old crop price was $4.87; the new was $5.00.
For wheat, the July future is being used for both old and new crop prices. On Friday, the contract was down 13 cents from the previous week at $4.25.
The Grain Farmers of Ontario (GFO) Soft Red Winter Wheat old crop price was $5.56, while the new was $5.63. Last year at this time, the old crop price was $6.10; the new was $6.21.