Thursday, March 27, 2025, 7:20 a.m.

Wednesday was yet another mostly negative day for our markets.  Harvest corn closed down 4 1/2, harvest soybeans closed up 1/4, harvest winter wheat closed down 8 3/4 and harvest spring wheat closed down 4 3/4.  In the overnight trade corn is mixed, soybeans and spring wheat are positive with winter wheat still negative.  Oil closed up $0.65 yesterday at $69.65 per barrel.  It is weaker in trading this morning with it now valued at $69.45 per barrel.  Our dollar has traded between a low of $0.699 US and a high of $0.702 US over the last 24 hours.  This morning it is currently valued at $0.700 US.

Corn and wheat prices were weaker yesterday and were pulled down by the truce made between Russia and Ukraine to cease hostilities in the Black Sea region.  This will make it easier for both countries to export agricultural products.  In theory this would bring more exports onto the world market but we should note that both countries have remained successful in exporting agricultural commodities throughout most of the war between them.

Soybean prices on the CBOT are back flirting with the $10 per bushel level for both nearby and harvest 2025.  The current harvest in Brazil is reported at 76% complete.  This is ahead of both last year’s 70% complete at this time and the 5 year average of 66% harvested.  Strong demand in Brazil is however supporting their local basis level and this has narrowed their cost advantage over US soybeans from over $1 per bushel down to about $0.20 per bushel on a FOB basis.  Bids out over the summer currently have US soybeans less expensive on the world market.  This should be providing some support to prices which we have not yet seen.

Last week ethanol production dipped in the US by just over 5% from the previous week.  It came in at 1.053 million barrels per day.  Blender demand declined by 2% week over week also.  Exports were up and the net result was stocks increased by 2.9% to sit at 27.35 million barrels.  Production is still ahead of USDA’s projections for the year and we should be seeing an increase in this in one of the upcoming monthly WASDE reports.

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.