Tuesday was another positive day for our markets. Spot corn closed up 5 3/4, spot soybeans closed up 16 3/4, harvest winter wheat closed up 9 and harvest spring wheat closed up 6 1/2. In the overnight trade corn and the wheat sector remain positive with soybeans now negative. Oil closed down $0.46 yesterday at $72.70 per barrel. It is weaker in trading again this morning with it now trading at $71.85 per barrel. Our dollar started out yesterday morning at $0.693 US and has since then trended higher. This morning it is currently valued at $0.700 US. This is the highest our dollar has been since the middle of December.
Our markets continued their rally yesterday with the general disregard for the potential trade war. With President Trump in charge is the trade war just in North America, is it with China or the European Union or will it be the whole world. That is the current uncertainty that is hanging over everything. Something new seems to jump up numerous times a day and the markets in general respond to them. For now our markets are trading like they are not concerned about any tariff war and as such traded higher yesterday. Our dollar has also found some strength with the US dollar weakening against most other major currencies.
Some analysts are looking at the 30 day postponement of tariffs from the US as a window to complete lots of shipments. It is possible that demand will spike in this period for some commodities which could result in higher prices. With logistics constraints being what they are it is hard seeing this as a major market mover.
Soybean crush data from the US for the month of December came in strong. They crushed 217.7 million bushels of soybeans which was up 3.65% from November and 6.57% from December of 2024. Remember strong domestic soybean meal and soybean oil demand has helped to keep the soybean crush running at an elevated pace.
Soybean oil prices have seem some big prices swings the last few days. The proposed tariff on canola oil from Canada was a boost for soybean oil in the US as it made it more attractive for biodiesel usage. Also the 10% tariff on imports of used cooking oils from China also made them less attractive for biodiesel usage. With the current postponement of the tariffs against Canada and talk that the 10% will not be on the used cooking oils from China soybean oil prices have pulled back big time. So many little things can affect our markets in big ways. This is only one small example of outside influences playing a large part.
If you would like to talk about the markets or price some of your crop for the future or in store, please reach out to us via phone or email to info@northgowergrains.com. Prices quoted herein are for product at our elevator.
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Office | 613-489-0956
