Despite rains of up to 9” in parts of the Corn Belt over the past week and what looks to be a planting opportunities next week, corn and wheat held onto technical support to close the week. That suggests the marketplace is waiting for more information on the quality of the wheat crop and on the extent of corn replanting and further progress or lack thereof, says Jerry Gulke, president of the Gulke Group in Chicago.
“The good news is we had a down draft [Thursday, May 4] in corn and wheat, and we didn’t go any lower” on Friday, Gulke says in an interview with “Weekend Market Update” host Jo Windmann. “It held some technical support, and the market looks like it just keeps holding to buy time.”
Corn prices actually closed 3 cents to 4 cents higher this week, and it appears planting windows will reopen over the next several days for farmers in Minnesota and South Dakota down through the heart of the Corn Belt. Flooded fields south of Interstate 80—many of which had already been planted to corn—remain an open question.
“You’ve got to wonder whether the market is thinking about what didn’t get planted and what has to be planted over again,” Gulke says.
Meanwhile, strong prices remain for segments of the livestock market.
“With higher-priced feeder cattle, there are opportunities for the guys that raise calves that sell them next fall, probably a 500-pounder, for almost $1,000 a head there for a couple of days,” Gulke says. “Live cattle have been going in the right direction for the week, as well."