North Gower Grains

Wednesday was a negative day for our markets.  Spot corn closed down 5, spot soybeans closed down 3/4, harvest winter wheat closed down 13 and harvest spring wheat closed down 11.  In the overnight trade corn, soybeans and winter wheat are positive with spring wheat still on the negative side.  Oil closed down $5.21 yesterday at $88.68 per barrel.  It is stronger this morning with it now trading at $91.41 per barrel.  Our dollar started out yesterday morning at $0.723 US and has trended mostly lower since then.  This morning it is currently valued at $0.721 US. 

Corn prices continued lower yesterday with the nearby market looking like it was going to test the $4.50 per bushel level on the CBOT.  The strong crop this year in South America with the record corn crop last fall in the US are weighing on this market.  Prices are also pulling back for new crop corn as the US crop is getting a strong start to its growing season.  Unless something changes on the demand side (China purchases) the supply side will dominate this market. 

It is nice to see this morning that prices for corn and soybeans are back on the positive side.  It is likely that this is mostly due to Managed Money amending their positions slightly.  With a supportive for crop growth and production Weekly Crop Progress Report released on Monday prices in theory should be negative not positive.  Remember the market does what the market does and we all know that it does not always make sense.  Today might be one of those days.  The negative trend is not our friend and hopefully prices today maybe able to break this trend.

Crude oil prices pulled back yesterday with some thought that the war between Iran and the US was nearing its end.  This morning there are new reports of increased tension (bombings) between the two sides which is decreasing the chance that the end will come very soon.  As noted above crude oil prices have jumped back up above the $90 per barrel level.