AgWeb Market Wrap: Corn & Soybeans Break Support

May 13, 2010 07:00 PM
 
By Linda Smith
Markets and Business Editor

"This was quite a week for the grains,” says Gulke. "We saw both positive and negative news but we are closing lower for the week in corn and soybeans.”
 
A bear flag has been in place in corn for about six weeks, says Jerry Gulke of the Gulke Group. "If it breaks out on the downside, it will indicate a new downtrend for about 15¢ to 20¢. I wouldn't expect that with China in the market, but what if they get a load and say it contains GMO and they don't want it?”
 
Soybeans are breaking their long-term trend, and the stock market is down hard again today—this time at the end of the week. For Gulke's chart update, visit www.gulkegroup.com, click "Additional Information” tab and request the charts.
 


Rain delays brought back memories of last year and the very slow progress. In North Dakota, there will definitely be some switching from corn to soybeans, Gulke predicts. "That's not important until we see other weather issues arise, then it could provide a tipping point.”
 
In the rest of the Corn Belt, "the majority of corn was already in the ground and after this weekend, it is supposed to get really nice,” says Gulke. "The so-called Omega highs got us off to a fabulous start, but we are only a month away from possible hot and dry conditions. My thought is it has all gone too easily so far.”

 


For More Information
AgWeb Market Wrap: A Down Week for Prices

Grain Market Factors to Watch This Summer

Economist: Crop Prices Continue to Get Bounced Around

AgWeb Markets

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