It was another tough week for soybeans as the futures in Chicago dropped 24 cents and lower basis levels in Ontario added insult to injury.
The market remained focused on planting delays for the U.S. corn crop, giving corn prices a boost throughout the week. The concerns had the opposite effect in the soybean market, fuelling speculation that more acres would be switched to soybeans. Weak U.S. export sales also pressured the bean market.
The weekly gains made in the corn market were all but erased on Monday (May 6) as trade tensions intensified between the United States and China. U.S. President Trump indicated that he would raise tariffs on $200 billion of Chinese goods from 10% to 25% this Friday. Corn markets plummeted in the early part of the session, eventually closing 5.5 to 7 cents lower. Soybeans lost another 12 cents.
On Friday, the old crop July soybean future closed at $8.42, down 24 cents from the previous week. The new crop November future was also down 24 cents at $8.64.
The Chatham-Kent (CK) high old price was $10.42, while the new crop was $10.69. Both old and new were down more than 30 cents from the previous week.
For the same period last year, the CK high old crop price was $12.93; the new was $13.05.
Corn finished the week in positive territory. For the purpose of week-to-week comparisons, we’re using the May future for old crop. The contract in Chicago closed Friday at $3.63, up approximately 12 cents from the previous week. The new crop Dec. future was up 7 cents at $3.88.
The CK high old crop price was $4.71, while the new crop was $4.78. Last year, the old crop price was $4.88; the new was $5.02.
For wheat, the old crop May future in Chicago closed at $4.28, down 7 cents from the previous week. The new crop July future was down 4.5 cents at $4.38.
The Grain Farmers of Ontario (GFO) Soft Red Winter Wheat old crop price was $5.74, while the new was $5.81. Last year at this time, the old crop price was $6.55; the new was $6.58.