Wednesday, January 29, 2025, 6:35 a.m.

Tuesday was a mostly positive day for our markets.  Spot corn closed up 3 1/4, spot soybeans closed unchanged, harvest winter wheat closed up 8 3/4 and harvest spring wheat closed up 9.  In the overnight trade all of our markets are on the positive side.  Oil closed up $0.60 yesterday at $73.77 per barrel.  It is weaker in trading this morning with it now trading at $73.21 per barrel.  Our dollar had a high yesterday morning before noon of $0.696 US and has trended mostly lower since then.  This morning it is currently valued at $0.693 US.

Wheat led our markets yesterday with no real news driving prices higher.  Possibly the market is responding to the news on Monday that the recent cold spell in the US damaged or killed up to 15% of their winter wheat crop.  Remember we have previously talked about how the wheat crop in Russia has also been under some weather stresses this winter.  Maybe it was just wheat’s day to run up in price!

Speculative funds continue to build their long position (looking for prices to go up) in the corn market.  As of last week it was reported they held just under 400,000 contracts which is their largest long position since June of 2022.  The negative part of this is of course when something occurs that changes the market sentiment that lower prices should be in play they will liquidate their position quickly and this will drive prices lower very fast.  However, currently the funds seem to be betting on the continued mixed weather in South America as positive for their investments.

Soybeans in Brazil are currently priced almost $1 per bushel under US soybeans on the world market.  This is making their product much more attractive and as harvest progresses this spread will most likely increase.  The export window for soybeans out of the US is closing and especially so for sales to China.

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.