The U.S. weather market may be over for corn, and but soybeans are still at risk for another 30 days, according to Jerry Gulke, president of the Gulke Group in Chicago. Demand should remeain high and support prices, thanks to South American weather woes that damaged crops earlier this year.
“South America is basically out of beans, and we are still selling soybeans (export sales) for this marketing year that ends in three weeks. Instead of selling 2 to 5 million bushels like we normally do at this time of year when South America is a big competitor, we are seeing sales five times that amount at times. Soybean (protein) demand from a global standpoint hasn’t been covered yet, as buyers remain short and hoping to buy cheaper,” explained Gulke.
The recent spike in soybean prices could be attributed to some weather, or some concern about all the rain some places will get, or possibility of disease, “but there is still that important underlying situation that, if you need beans, the US. has them in sufficient quantities; and South America does not,” Gulke observed, speaking with Pam Fretwell on Farm Journal Radio.
South America may be losing out to the U.S. in corn as well. South Korea is bidding for corn, according to Gulke, which may show whether the U.S. is the low-cost provider.
Listen to Gulke’s full comments here: