Corn Futures Jump to Above $4. It's About Time.

December 13, 2014 01:00 AM
Corn Futures Jump to Above $4. It's About Time.

After a surprisingly negative reaction to Wednesday’s USDA report, the grain market may finally be coming to its senses and boosted corn futures above $4 on Friday.

“For the life of me, I couldn’t understand why grains would be down,” said Jerry Gulke, president of the Gulke Group in Chicago and a farmer in northern Illinois. “I think it took a while for the market to understand that we are lowering supplies—the carryovers--not increasing them, as so many people thought. And the demand is much more robust,” with the government raising soybean exports by 40 million bushels.

But the market may be starting to agree. Prices for March corn futures moved up 9 cents to $4.074 on Friday afternoon, and soybeans gained 5 cents to $10.536, also for March futures.

“There are a lot of people out there saying, ‘Maybe we’ve got these grains too low. Jerry and his friends can’t make money down here,’” said Gulke, who has cautioned farmers repeatedly in recent months about selling their grain at this fall’s low prices.

Listen to Gulke's full report here:



Their stubbornness—and the market’s nervousness about how sub-$4 corn prices could affect 2015 planting decisions—may finally be translating into more money for their grain. “I think farmers are pretty smart. They’re sitting back and saying, ‘You’re going to come to me or I’m not going to plant your crop,’” said Gulke. “We’ll see. We’re getting close to the point where I think farmers will like the price.”   

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Spell Check

Hindsboro, IL
12/13/2014 10:11 PM

  If farmers still have to price they still missed the boat because they should have priced in early May to take advantage of the rally due to delayed Spring planting when Dec '14 CBOT corn prices were over $5....they then could have hedged off that price to protect against possible higher prices if Summer weather went bad....then they would not have had to put in the labor/expense to put the grain into their bins & to take it back out bins are for farmers who don't do their marketing right the first time.

nut, MN
12/13/2014 07:20 PM

  Farmers might like $4 corn??? Should we be happy with break even price??? I need to put food on the table like everyone else. Maybe Gulke should be payed only at his breakeven cost and see if he "likes it"

Dwight, NE
12/15/2014 08:46 AM

  At from Hindsboro. How do you price your corn, when your a dry land farmer in Nebraska, And don't say use insurance because that don't work either. 2012 was one of the worst crops ever and my insurance got out of paying me though some kind of loop hole they found. Sometimes It just wont rain here for 2 months or more. For me there is no playing the board or fwd contracting unless your prepared to loose your farm!! I have raised 65000 bu of corn on my farm and the next year i raised 7200.