Corn, soybean and wheat prices showed impressive gains this week.
What a week. Prices for corn, soybeans and wheat rallied, with some showing 30- to 70-cent gains. "We had a 30-cent move up in old-crop corn – in one week," says Jerry Gulke, president of The Gulke Group. "Three months ago we thought that would never happen again."
With corn prices flirting with $5 again, Gulke says he sold some old-crop corn on Friday. "That may be a mistake with the way things are going," he says. "But that keeps with my management plan of selling old-crop corn."
Bean prices are also showing considerable strength. "If you look at July soybeans, it is almost just straight up," he says. "The big catalyst there was everyone was expecting China to cancel bean shipments from the U.S. and buy the cheap beans from South America, and it just isn’t happening."
With the constant increase in bean prices, Gulke says there may be a chance everyone has grossly underestimating the demand for protein worldwide.
Wheat prices showed significant gains for the week. This was due to the unrest in Ukraine, Gulke says. "They have admitted they aren’t interested in selling anything until things stabilize," he says.
Hear Gulke's full audio analysis:
Yet, Gulke says prices were headed up before the Ukraine situation unfolded. "But, Ukraine adds more uncertainty," he says. "We now have a competitor who may not have a crop, so we’ll benefit from that."
USDA Reports Out on Monday
On Monday, March 10, USDA will release its monthly Crop Production and World Agricultural Supply and Demand Estimates.