As planters rolled across cropland this week, corn and soybean prices leaped higher. For the week ending April 27, July corn jumped 13¼ higher, with December corn 12 cents higher. July soybeans closed 16¼ higher for the week and November beans were 12¾ higher.
“It is rare we see a rallying market in the planting season when we’re not really delayed that much,” says Jerry Gulke, president of the Gulke Group. “You can plant corn in a couple weeks. This is a market that is nice to see.”
The U.S. dollar also had a big week, breaking out to the upside. Conventional wisdom would say that would hurt corn and soybean prices in the U.S., as our commodities would become more expensive in the global marketplace. But, that may not be the case.
“With total global supplies dropping for corn and soybeans worldwide, we have a different scenario,” Gulke says. “When the situation switches and becomes one of focusing on getting physical possession of a commodity, the price issue becomes relatively less important.”
Gulke spent the week in North Dakota, where he says farmers are geared up and ready to plant. Now he’s back in Illinois and hopes to start planting his own acres on Monday.
In this week’s audio report, Gulke discusses planting plans in North Dakota, political issues weighing on the grain markets and his crop mix for this spring. Be sure to visit AgWeb.com on Monday afternoon, when Gulke will share his weekly “The Rest of the Story” column.