Wheat rises on colder temps and Greer comments

Fears of winter kill of the germinating wheat plants in the highly fertile Black Sea region of Europe and colder temps in the U.S. plains stimulated buying by both wheat users and major funds that invest in wheat in anticipation that the bottom in prices has finally come to an end.

Comments by Jamieson Greer, President Trump’s nominee for U.S. Trade Representative, made to the U.S Senate on Thursday caused speculation that greater sales of wheat to China could occur.

Both Chicago (soft red wheat) and Kansas City (hard red wheat) rallied to the highest levels in months, raising hopes that growing wheat will become profitable for U.S. farmers. Wheat for March delivery in Chicago rose to $5.92 per bushel on Friday morning from a low of $5.25 on Jan. 10.

Mexico agrees to sweet corn decision for U.S.

Mexico and the U.S. have settled a five-year dispute over U.S. corn exports to our southern neighbor. The Mexican government had banned imports of U.S. genetically engineered corn for use in dough and tortillas. Their government also looked to eliminate genetically engineered corn in other humanly consumed foods and in animal feed.

In December 2024, a panel of the US-Mexico-Canada Agreement ruled that Mexican claims were not based upon science and international standards. While Mexico disagreed with the panel’s findings, it did agree to abide by the final decision.

The U.S. expressed gratitude to Mexico for its acceptance. In 2024, U.S. farmers exported $5.6 billion in corn to Mexico. The decision will continue to benefit U.S. corn growers. Heavy export sales, boosted by a declining U.S. dollar, drove corn prices up midweek.

Lower oil prices slide us up and down

The recent drop in oil prices, aided by shifts in U.S. energy policy, has a number of both positive and negative effects across the globe. Consumers, of course, can benefit from lower gasoline prices, which allow for more discretionary spending to benefit retailers, hotels and restaurants. Manufacturing transportation cost savings can lead to some reduced prices on consumer goods, and the auto industry can push sales of big gas burners.

However, the gas guzzling negatively affects the environment. At the same time, any abundance of oil reduces interest and investment in low carbon alternative fuel and other forms of renewable energy.

Meanwhile, reduced incentives for oil drilling cause layoffs and job loss, and bankers along with investors take losses when oil drilling isn’t profitable. Internationally, countries whose economy is based largely on oil production face stiff economic challenges.

Egg prices: Consumers take beating

Egg yolks are no laughing matter with so many people scrambling to shell out for a dozen. Folks’ brains are fried trying to crack the egg dilemma, but it won’t be over easy. Prices are boiling over and few people can see the sunny side of the issue. My 18-year-old grandson recognizes the problem, even though he is no pro-teen.

CME midday prices: Price per bushel: March Soybeans, $10.50; March Corn, $4.87; March Wheat, $5.82. April Livestock per 100 pounds: Cattle, $196.60; Hogs, $92.30. Metals per troy ounce: April Gold, $2,883; March Silver, $32.45. March Copper per pound: $4.60. March Crude oil per barrel: $70.85.

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