Wednesday was a negative day for our markets. Harvest corn closed down 3 1/2, harvest soybeans closed down 2, spot winter wheat closed down 7 1/4 and spot spring wheat closed down 15 1/4. In the overnight trade corn and spring wheat are mixed with soybeans and winter wheat still negative. Oil closed at $64.15 per barrel yesterday. It is weaker in trading this morning with it now valued at $63.88 per barrel. Our dollar started out yesterday morning at $0.722 US and has trended up since then. This morning it is currently valued at $0.727 US.
Wheat prices are continuing their trend lower. Reports out of Russia has their wheat crop increasing as harvest is bringing larger yields then were earlier projected. This has led Russia to decrease export prices by up to $8 per tonne this week as they have once again become aggressive sellers. Rains and beneficial growing weather in Australia has also led analysts to predict very strong crops there this year. Their wheat production is projected at about 8 million tonnes over their 5 year average. This will result in more tonnage competing on the world market. As we are seeing more competition results in lower prices.
Corn prices are also being pressured with the supply side dominating. Prospects of the huge supply coming to the market in the US very soon plus the large crop this year in South America plus Ukraine being aggressive on the world market is pushing prices lower. Prices fell yesterday below the 20 day moving average on the CBOT and this is a negative technical indicator that could lead to lower prices going forward.
Weekly ethanol production decreased in the US last week by 0.2% down to 1.070 million barrels per day. Blender demand increased 1% week over week however exports decreased from 172,000 barrels per day down to 121,000 per day. Net result was a drawdown in ethanol stocks of 0.6% down to 22.549 million barrels (947 million gallons) which is a new low for the 2025 calendar year. If weekly production was to fall below the 1 million barrels per day, that would be seen as negative for this market.
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
Tony Mitchell | 613-227-2525
Office | 613-489-0956
