North Gower Grains

Friday, February 21, 2025, 7:35 a.m.

Thursday was a mixed day for our markets.  Spot corn closed up 1/2, spot soybeans closed up 13 3/4, harvest winter wheat closed down 5 3/4 and harvest spring wheat closed down 2 1/4.  In the overnight trade corn and soybeans are negative with the wheat sector now positive.  Oil closed up $0.38 yesterday at $72.48 per barrel.  It is weaker in trading this morning with it now valued at $71.84 per barrel.  Our dollar started out yesterday morning at $0.703 US and then trended higher going up to $0.706 US late in the trading day.  It has eased back a bit this morning with it currently valued at $0.705 US.

Soybean prices led our markets yesterday and were supported by a couple of different items.  The first being a rumour that the US and China are talking about a new trade deal.  If this was to occur it would most definitely include agricultural goods and soybeans would be front and centre.  They also gained some strength from the soybean oil sector.  India cancelled some palm oil import contracts and is expected to replace them with soybean oil imports that are currently less expensive.

Crop conditions in Argentina improved week over week showing the positive effects of last week’s rain events.  Both corn and soybeans gained 2-3% in the good category and lost the same in the poor category.  Weather projections for next week are looking at a return to hot and dry conditions however current soil moisture levels should be adequate for the time being.

Weekly ethanol production in the US was up 0.2% last week to sit at 1.084 million barrels per day.  Both blender demand and exports were down week over week and as such stock levels rose 2% up to 26.218 million barrels.  With the winter storms last week this is a very strong production number.

US oil and biofuel groups have joined forces to lobby the new Trump administration to increase volumes of renewable fuels required to be blended into the nation’s fuel mix in 2026 and onwards.  Historically these two groups have not worked together however they now have a common enemy in electric vehicles which pose a threat to any form of liquid fuel.   We should also note that the two largest ethanol producers in Ontario are working jointly with the Grain Farmers of Ontario to lobby our governments on the local benefits of the ethanol industry.

Friday’s thought:  In life it’s not where you go.  It is who you travel with!

If you would like to talk about the markets or price some of your crop for the future or in store, please reach out to us via phone or email to info@northgowergrains.com. Prices quoted herein are for product at our elevator.