Wednesday, May 21, 2025, 7:05 a.m.

Tuesday was another positive day for our markets.  Harvest corn closed up 6 3/4, harvest soybeans closed up 4, harvest winter wheat closed up 17 and harvest spring wheat closed up 11 1/2.  In the overnight trade all of our markets remain on the positive side.  Oil closed down $0.11 yesterday at $62.03 per barrel.  It is stronger in trading this morning with it now valued at $62.57 per barrel.  Our dollar had a low of $0.716 US yesterday morning and has trended higher since then.  This morning it is currently valued at $0.721 US.

Yesterday we talked about how the funds have changed their position in the corn market.  This morning let’s focus on the wheat market.  Managed money currently holds the largest combined short position on record in the wheat market.  This has been a very profitable investment as prices have grinded lower.  If and when they liquidate this position it will give the market lots of fuel for a rally.

This rally maybe starting as the market focuses on the current heat wave in China with temperatures reaching over 100 degrees Fahrenheit.  The high temperature with the lack of moisture has to be hurting their wheat crop.  As we noted yesterday China will need to import increased amounts of wheat this year.  There is talk that they are already making purchases around the world including wheat from Canada.  It seems that they are mostly staying away from US wheat with the thought that once they enter that market prices will take off.  If they make large purchases from the US it could trigger the money managers to quicken their liquidation of their short positions.

The current weather forecast in the US is bringing rain to much of the Corn Belt.  This is expected to slow down the planting rates this week for corn, soybeans and spring wheat.  Although all three crops remain ahead of their respective 5 year planting averages the possible current delay is probably helping prices to stay positive in the early days of this trading week.

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.