This week, we had big market moves in just about everything, says Jerry Gulke, president of the Gulke Group.
Right before the new year, everything was looking good in terms of crop prices. As of Monday, promising market moves looked to be in store, but by Tuesday prices started looking bad and for the rest of the week it was even worse.
“I knew we were due for some kind of a correction, but not quite like this,” Gulke says. “This week we had a key reversal down in corn, which means we had new highs for the year, then turn around and close below the last week of December’s low.”
The huge swings in prices can be attributed to the repositioning of funds, he says. “These very volatile markets can be blamed on money flow.”
With the Jan. 12 crop production report looming ahead, Gulke says the consensus is for a bullish report.
“Nobody can anticipate that the yield is going to be more. Everybody expects the government is going to lower the corn yield cause small crops get smaller and that the usage for the first quarter is going to be a record for both corn and beans and there might be a estimate on wheat they we’re going to ship more wheat.”
Gulke hopes a bullish report is in the fugure, as that’s what will take prices higher.
Stay tuned to AgWeb for further pre-report coverage of the Jan. 12 reports.