Thursday was a nice positive day for our markets. Harvest corn closed up 4, harvest soybeans closed up 5 1/4, harvest winter wheat closed up 8 3/4 and harvest spring wheat closed up 10 1/2. In the overnight trade corn and the wheat sector are back on the negative side with soybeans now mixed. Oil closed down $1.13 yesterday at $66.55 per barrel. It is stronger in trading this morning with it now valued at $67.30 per barrel. Our dollar started out yesterday morning at $0.696 US and then went lower going down to $0.692 US early in the afternoon. It has stayed within that range since then with it currently valued this morning at $0.693 US.
Wheat prices rallied yesterday and were supported in a couple of ways. Winter wheat was able to rally up to beat both their 50 and 100 day moving averages. As the US winter wheat crop comes out of dormancy much of that growing area is dry and this will be putting their crop under some stress. Temperatures over the next week are projected above seasonal norms and this will add to the stress on the crop as it tries to get growing. Weekly exports last week for wheat in the US was the highest since June of 2024. The pull back in prices in February for the wheat market has made US wheat more competitive in the world market and this has resulted in increased export sales.
Weekly ethanol production in the US fell by 3% last week to sit at 1.062 million barrels per day. Blender demand was lower for the week by 1.3% however export increased from 123,000 barrels per day up to 162,000 barrels per day. Ethanol stock levels rose by 0.3% up to 27.2 million barrels.
Ethanol production from corn in Brazil is estimated to nearly double by 2032 reaching up to 16 billion litres. Production for this year is projected at 9.5 billion litres which compares to only 6.3 billion litres for the previous year. There are currently 22 corn ethanol plants in Brazil with 12 more under construction. Brazil also has a well-established ethanol industry that utilises cane sugar for production.
Friday’s thought: We do not meet people by accident. They are meant to cross our path for a reason!
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
