Wednesday was the third consecutive positive day for our markets.  Harvest corn closed up 7, harvest soybeans closed up 11 1/4, harvest winter wheat closed up 3 1/4 and harvest spring wheat closed up 6 3/4.  In the overnight trade all of our markets have fallen back on the negative side.  Oil closed down $0.46 yesterday at $61.57 per barrel.  It is weaker in trading again this morning with it now valued at $60.38 per barrel.  Our dollar had a low yesterday morning of $0.720 US and a high of $0.724 US around noon.  It has trended lower since then with it currently valued this morning at $0.721 US.

Wheat prices on the CBOT closed yesterday just above the 50 day moving average for the first time since St. Patrick’s Day.  Prices have closed higher 5 of the last 6 trading days.  One area of concern is that prices closed yesterday about 7 cents off the high for the day.  This market has rallied with production concerns on the world side mostly in China and Russia.

Corn prices closed yesterday above both their 50 and 100 day moving averages.  It is the first close above the 100 day moving average since April 25 of this year.  Prices have rallied about 20 cents since the close last Friday.  With the current wet weather in parts of the Corn Belt there is starting to be talk that maybe all the acres projected for this year by the USDA will not get planted.  If this does occur the USDA would have to rejig their corn balance sheet going forward and this would be supportive prices.

Weekly ethanol production in the US rebounded over 4% last week resulting in 1.036 million barrels per day of production.  This is up from what was a rather disappointing production amount for the previous week.  Even with the increased production ethanol stocks decreased 2% week over week.

After the three day rally all of our markets are down today.  Hopefully this will just be a small correction after the nice rally.  They could be responding to the outside markets reaction to the current fiscal talk in the US with large budget deficits and of course more questions about the tariff policies going forward.

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.