It’s time to fall in love with the corn market…all over again.
The week ended on a sweet note and not just because of Valentine’s Day. Jerry Gulke, president of The Gulke Group, says several signs are pointing to a bottom forming in the corn market.
"We’re in a confused state of the market," he says. "The traders really don’t know what we think or what we’ll do this spring, and maybe we don’t either."
Hear Gulke's full audio analysis:
He says as of now, the market seems to be thinking farmers will plant a lot more of beans this year. "Yet, we don’t have evidence of that," he says. "We probably really won’t know until the end of June what we really planted."
On top of that, China has been cancelling grain shipments.
Yet, the corn market has been continuing in a sideways trading range. "The corn market has had all the opportunity this week to close lower," Gulke says. But, this is the third week in a row where we’ve been higher. Everybody knows we have an oversupply of corn and we still don’t go any lower."
Gulke says that March 2014 Corn closed higher this week than it has since November 2013. "That is pretty significant," he says.
"We’ve gone through all that negative news and it seems like the market is trying to absorb all the grain that we can sell, which is really an interesting situation." He says you typically see this satiation when the market finally tries to put in a bottom.
Uplifting Economic News
This week, Gulke lead his annual member conference in Palm Springs, Calif. Attendees heard several experts speak about the global economy, grain supply and demand and the farm bill.