Corn Market Hunting for More Acres

February 18, 2011 07:47 PM
 
Corn Market Hunting for More Acres
At this time of the year, grain markets to in their own directions, says Jerry Gulke, president of the Gulke Group. And, it looks like the corn market is moving up since it wants more acres.
 

LISTEN TO GULKE’S AUDIO COMMENTS

 
For the week, corn was higher and soybeans were lower.
 

Gulke Group Inc.

www.GulkeGroup.com
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Gulke Group's Technical Analysis: Fundamentally Easy

"The market is concerned about having enough corn planted," he says. In the south, odds are many corn and soybean acres will be lost to cotton. "Cotton is crazily highest, the highest level since the Civil War. So that is buying a lot of acres."
 
With the reports this week, Gulke notes, the government says we will plant enough acres to meet all demands, feed, food and fuel. But, he says, there are a lot of catastrophic events and caveats we need to watch for. "Markets go up in the anticipation of something happening."
 
For soybeans, the story is totally different from corn, in the short-term. "Depending on how soybeans that last day of the month, we could post a monthly key reversal down."
 
Gulke points out next week, there will be four days of trading to affect the February average for insurance and suggests farmers do some research to learn what happens in years of short supply. "That may give a whole new basis for making marketing decisions."
 

 

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