North Gower Grains

Tuesday was another nice positive day for our markets.  Spot corn closed up 4 3/4, spot soybeans closed up 13 3/4, harvest winter wheat closed up 45 and harvest spring wheat closed up 36 3/4.  In the overnight trade corn and soybeans are still positive with the wheat market mixed.  Oil closed up $4.01 yesterday at $102.08 per barrel.  It is stronger again this morning with it now trading at $102.23 per barrel.  Our dollar has traded between a low of $0.729 US and a high of $0.731 US over the last 24 hours.  This morning it is right in the middle of the range with it currently valued at $0.730 US.

First thing I would like to do today is congratulate our customers who had target orders hit yesterday.  Most specifically in the SRW wheat market as prices surged.  I would also like to thank our other farmers who took advantage of the price increase to lock in some prices for both this year and next year’s production.  You should note that we are now posting prices for harvest of 2027 for all of our crops.

The USDA monthly WASDE report did bring some fireworks to our markets yesterday. Reduced winter wheat production in the US by 25% from last year was the driver for the price increase.  HRW wheat went up the daily limit of $0.45 per bushel with the SRW wheat market on the CBOT almost went up the limit.  The biggest reduction in the wheat production was HRW wheat which also helped to drive spring wheat prices higher.  US wheat is very overpriced on the world market and this will keep a lid on prices going forward.  Just what this lid will be is yet to be seen.  It is highly likely that the US will be importing some high protein wheat for domestic usage over the next marketing year.

New crop soybean prices closed at a new marketing year high again with optimism that China will increase purchases this week when the two Presidents get together.  Remember however if something positive does not come out of the meeting this would be a big negative for the soybean market.  I have also seen other reports that there is a possibility that China does not increase soybean imports from the US but instead purchases corn and wheat.  Whatever does occur will be sure to have an effect on our markets.

For corn the report was mostly neutral as they came in with carry out stocks slightly higher than expected.  For soybeans they came in with carryout stocks slight lower then pre report estimates.  No change in expected acres from the March Planting Intentions Report with trend line yields utilized.  Changes were made in the balance sheet with exports etc.  The story on corn and soybeans is yet to be told as the growing season progresses in the US.