North Gower Grains

Monday was a positive day for our markets.  Spot corn closed up 5 3/4, spot soybeans closed up 13 1/2, harvest winter wheat closed up 15 and harvest spring wheat closed up 1 1/4.  In the overnight trade corn and the wheat sector remain positive with soybeans mixed.  Oil closed up $1.97 yesterday at $96.37 per barrel.  It is stronger again this morning with it now trading at $100.44 per barrel.  Our dollar started out yesterday morning at $0.735 US and has trended lower since then.  This morning it is currently valued at $0.731 US.

Prices rallied yesterday with soybeans and winter wheat leading the way.  Soybean meal jumped up yesterday with strong demand helping to support prices.  Prices had pulled back last week and buyers are now seeing value purchases being made to meet current demand.  Winter wheat prices jumped up again with weather concerns for much of the US winter wheat growing regions.

Crude oil prices are jumping up this morning and this is most likely related to problems with the ceasefire in the war against Iran.  More news reports about fertilizer prices jumping up for this summer and most likely next year.  This is a story that is going to take along time to work out.

Yesterday the USDA released their weekly Crop Progress Report.  Corn plantings increased from 11% last week up to 25% this week.  Last year at this time they had 22% of the crop planted and the 5-year average is only 19% planted.  Soybean plantings came in at 23% completed.  This is up from 12% last week and is well ahead of both the 5-year average of 12% and last year’s 17% planted at this time.

Spring wheat plantings came in at 19% complete.  This is up from 12% last week and is behind the 5-year average of 22% and last year’s 28% planted at this time.   For winter wheat the good to excellent rating was unchanged from last week at 30%.  Last year at this time it had a 49% good to excellent rating.

This report should be considered slightly bearish for corn and soybeans with the fast-planting pace being recorded.  For both wheats the report is mostly neutral with spring wheat being a bit slow in plantings and the stable good to excellent rating for winter wheat.