North Gower Grains

Friday was a nice positive day for our markets.  Spot corn closed up 3 3/4, spot soybeans closed up 15 3/4, harvest winter wheat closed up 6 3/4 and harvest spring wheat closed up 5 1/2.  In the overnight trade all or our markets remain on the positive side.  Oil closed up $0.34 on Friday at $95.42 per barrel.  It is stronger again this morning with it now trading at $98.47 per barrel.  Our dollar traded between a low of $0.729 US and a high of $0.733 US on Friday with it closing out at right in the middle at $0.731 US.  It is up just a bit this morning with it currently valued at $0.732 US.

Our markets continued their topsy turvy week on Friday with prices coming back up.  The market was watching the war between Iran and the US and wondering if a peace plan was going to pass or not.  Also, the market was drawing some support from the upcoming meeting between President Xi and President Trump with some optimism that a new trade deal will be made.

It is looking like the peace proposal is not moving forward this morning.  President Trump has rejected the latest proposal from Iran.  There were reports that China was trying to put pressure on both sides to end the current war but unfortunately this was not enough to end the war.  What the next steps are we will have to sit back and just watch.

Managed money increased their long position (looking for prices to go up) in both the corn and soybean markets last week.  As farmers were selling with some high prices on the CBOT managed money were purchasers.  They currently are holding a new record long in the combined soybean market of soybeans, oil and meal.  Speculators are supporting our markets and have helped to keep prices strong.  When they start liquidating this position remember that prices will probably fall hard and fast.

Tomorrow the USDA will release their monthly WASDE report and this report does include the USDA’s first official look at the new crop balance sheet.  With corn acres coming down this year it will be interesting to see if they decrease corn acres even further then what the marketplace is looking for.  Remember they are still projecting a stocks level at about 2 billion bushels for the end of the current marketing year and this will help to keep a lid on prices no matter what production they project for this year.

Later today the USDA will release their weekly Crop Progress Report.  We should expect to see the fast-planting pace for both corn and soybeans to continue.  The good to excellent rating for their winter wheat crop will be very interesting to see.