North Gower Grains

Friday was mostly positive day for our markets.  Spot corn closed up 5 1/2, spot soybeans closed up 7 3/4, harvest winter wheat closed up 1 and harvest spring wheat closed down 3/4.  In the overnight trade corn and soybeans are positive with the wheat sector on the negative side.  Oil closed down $3.13 on Friday at $101.94 per barrel.  It is stronger in trading this morning with it now trading at $105.36 per barrel.  Our dollar traded between a low of $0.736 US and a high of $0.738 US on Friday with it closing out at the low end of the range.  It has weakened a bit this morning with it currently valued at $0.735 US.

Harvest 2026 corn prices hit a new high on Friday with the CBOT briefly trading above $5 per bushel. Prices pulled back near the end of the trading day but have rallied back above that number this morning.  When the current war started corn prices did not jump like soybeans and the correlation between higher crude oil prices and higher corn prices was seemingly broken.  As the war has continued and corn prices have slowly increased it is starting to look like this correlation of higher prices together is being restored.  If this is correct when and if this war ends and crude prices pull back beware what could happen in the corn market.  Saying this I just want to remind everyone that harvest corn prices are strong especially compared to the last couple of years and this is a great opportunity to get some prices locked in for this year’s production.

Soybean prices also hit a new harvest high on Friday.  The vegetable oil market has been strongly supported by the higher price of crude oil and this is of course supporting soybean oil and the soybean market.  Somehow the marketplace does not seem that concerned with the massive crop harvested this year in Brazil and the prospects of larger production this year in North America.  Remember the US Farmer is expected to plant at least 3 million more acres of soybeans this year as compared to last year and this number could increase with the talk of the high price of fertilizer.  Just like the corn market this market should be rewarded with some sales of 2026 expected production.  When crude oil prices pulled back after the war ends we will no doubt see a decrease in soybean prices.

Crude oil prices have jumped this morning after it was reported that an American patrol boat was hit with two missiles after disregarding Iranian warnings.  The US has denied these reports however it spooked the markets and crude prices did increase.  As always we will continue to watch what is occurring with this war and how it affects our markets.