North Gower Grains

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Monday was a nice strong positive day for our markets.  Spot corn closed up 21 1/4, spot soybeans closed up 34, harvest winter wheat closed up 28 3/4 and harvest spring wheat closed up 18.  In the overnight trade all of our markets remain on the positive side.  Oil closed up $3.36 yesterday at $104.38 per barrel.  It is weaker this morning with it now trading at $103.65 per barrel.  Our dollar started out yesterday morning at $0.728 US and then trended lower going down to $0.726 US in the overnight trade.  It has come up just a bit this morning with it currently valued at $0.727 US.

As we reported yesterday morning outside forces have once again greatly influenced our markets.  With the Fact Sheet released on the weekend by the US Administration stating that China has recommitted to the 25 million tonnes of soybean purchases per year plus an additional $17 Billion of agricultural purchases per year.  Full details of what will be included in the additional purchases is yet to be seen.  This new agreement (nothing signed) is to be for 3 years.  This is a game changer for our markets and depending on what the additional purchases include could have a major effect on prices going forward.

The Strait of Hormuz remains closed as peace proposals are going back and forth between the two main parties.  As these proposals keep getting rejected it is getting harder and harder to figure out when this war will end.

The USDA released their Weekly Crop Progress Report yesterday.  Corn plantings came in at 76% complete.  This was up from 57% last week and compares to 76% at this time last year and the 5-year average of 70%.  They also reported that 39% of this crop is now emerged.  This is up from 23% last week and compares to 47% at this time last year and the 5-year average of 37%.

For soybeans plantings came in at 67% complete.  This was up from 49% last week and compares to last year at this time of 63% and the 5-year average of only 53%.  They also reported that 32% of this crop is now emerged which was up from 20% last week.  This compares to 32% at this time last year and the 5-year average of only 23%.

The good to excellent rating for their winter wheat crop decreased 1% week over week to come in at 27%.  This compares to a good to excellent rating last year for this crop of 52%.

The spring wheat crop is now reported at 73% planted.  This is up 20% from last week and compares to 80% at this time last year and the 5-year average of 66%.

This report should be considered bearish for both corn and soybeans due to the continued fast planting pace.  For winter wheat the decreased good to excellent rating remains bullish for this market and for spring wheat the report is mostly neutral.