North Gower Grains

Monday, March 2, 2026, 7:10 am

Friday was a nice positive day for our markets.  Spot corn closed up 5, spot soybeans closed up 7 1/4, spot winter wheat closed up 17 and spot spring wheat closed up 14.  In the overnight trade corn is positive, soybeans are mixed and the wheat sector is negative.  Oil closed up $1.81 on Friday at $67.02 per barrel.  It is stronger in trading again this morning with it now valued at $72.12 per barrel.  Our dollar traded between a low of $0.731 US and a high of $0.734 US on Friday with it closing out at $0.733 US.  With some choppy trading this morning it is once again valued at $0.733 US.

Last week oil prices increased with the potential conflict between Iran and the US brimming.  With the bombings of Iran on the weekend by the US and Israel supply uncertainty has come into the oil market and prices are jumping up.  Threats that Iran will disrupt (potentially stop) oil flow throw the Strait of Hormuz is the immediate concern.  Roughly 20% of the global oil supply flows through this straight.  In response to this threat the OPEC + nations have pledged to increase production.  How high oil prices go will most likely be directly related to whether the oil flow is restricted and if the current activities expand into other oil producing nations in the area.

Further news on the attack over the weekend was an announcement out of China that they strongly opposed the US action against Iran.  China currently is Iran’s largest oil purchaser with Iran supplying roughly 14% of their crude oil needs.  It is felt that the bombing of Iran will bring increased tensions between China and the US which would decrease the likelihood of a trade deal in their upcoming meeting.

The conflict has also brought some uncertainty to our commodities.  Corn prices are back near levels reached prior to the large increase in yields and stock levels with the USDA report back in January.  Wheat prices have reached levels not seen since last summer and soybeans have traded at new contract highs for the nearby month on the CBOT.  Prices are still not back at highs reached last year but the trend is currently our friend.

Managed money continued their recent buying spree for our commodities.  As of last Tuesday their short positions (looking for prices to go down) in corn and wheat were reduced significantly with their long position (looking for prices to go up) in soybeans keeps increasing.  It is thought that by the end of last week speculative funds are now holding a long position in corn to go with their long position in soybeans.  These funds are bringing money into our markets and this is helping to support prices.

Last week was a positive week for our markets between both the CBOT and some basis changes with the roll of the nearby trading month.  Spot corn closed up $6 per tonne with harvest 2026 up $2 per tonne.  Soybeans were up $10 per tonne on the spot market with this year’s harvest up $8 per tonne.  Spring wheat was up $5 per tonne on the spot market and $8 per tonne for this year’s harvest.  Winter wheat was up $6 per tonne for the spot market and $5 per tonne for the coming harvest.