Hold on to your hat. Corn and soybean prices reached all-time highs this week and could go even higher.
For the week, September 2012 corn jumped $0.84 and December corn up $0.55. September soybeans surged $1.44 and November soybeans $1.34. See this week's price movements:
The nearby corn and soybean charts resemble a bottle rocket’s launch pattern:
Corn September 2012 (CBOT)
Soybeans August 2012 (CBOT)
Jerry Gulke, president of the Gulke Group, says crops are deteriorating in front of our eyes as each day passes. "This crop is going down fast."
Gulke says he believes the trade is already trading a national corn yield average of 135 bu./acre, but even that number could decrease with new crop condition rating information from USDA.
"Monday morning, we may see the biggest drop in crop condition ratings in corn and soybeans in history. Regardless of whether its 6 or 10 or 12 points down, this crop isn’t getting any better."