North Gower Grains

Friday, March 20, 2026, 7:25 am

Thursday was another positive day for our markets.  Spot corn closed up 6 1/2, spot soybeans closed up 6 3/4, harvest winter wheat closed up 3 3/4 and harvest spring wheat closed up 6 1/2.  In the overnight trade corn and the wheat sector are negative with soybeans still on the positive side.  Oil closed up $0.09 yesterday at $95.55 per barrel.  It is weaker in trading this morning with it now valued at $94.94 per barrel.  With some choppy trading over the last 24 hours our dollar has traded between a low of $0.727 US and a high of $0.729 US.  This morning it is at the high end of the range with it currently valued at $0.729 US.

Current sales and shipments out of soybeans out of Brazil especially to China have slowed down this week.  There is much talk about the lack of bunker oil that the majority of the large bulk cargo ships utilise is hindering this market.  These shipments could also be delayed from the recent phytosanitary problems that Chinese importers were having with soybeans from Brazil. The current delay has not really affected soybean prices yet however it is something that we will have to keep an eye on.  It is possible that Chinese buyers are stepping back to empty space that US soybeans could fill with a possible new purchase agreement that the two President’s would announce.  This is probably wishful thinking but it is a possibility.

Soybean prices were supported yesterday by a strong increase in soybean meal prices.  It looks like speculative funds have jumped in to increase their long position in this market.  The extra support might have come from a small decrease in their long position in the soybean oil market.  Remember as the money flows it can directly affect our prices going forward.

New crop corn prices have recently been supported by the increase in energy prices.  This morning I watched a market analyst say in a video that higher input prices are helping to rally this market.  This is completely inaccurate as the market does not care what it costs to grow the crop.  Every end user wants to pay as little as they can no matter what it costs you to grow it.

Weekly ethanol production in the US decreased 3% last week from the previous week.  This resulted in production at 1.093 million barrels per day.  If this production was maintained over the full year they would still consume 5.6 billion bushels of corn.  No real concern with the weekly pullback as it was coming off an almost record high week.  With the announcement expected next week by the US Administration about their new ethanol and biodiesel targets coming out this industry remains very important and supportive to corn growers.

Friday’s thought: Do not do something permanently stupid just because you are temporarily upset!