This week, July 27, 2018, ended strong in the crop sector. “All grains were higher to much higher,” says Jerry Gulke, president of the Gulke Group. Corn ended around six cents higher on the week, soybeans ended 20 cents higher and wheat was up 14 cents. This marks the second week in a row with grains closing higher on the week.
“From a fundamental standpoint, we’ve some reasons to be optimistic,” Gulke says.
In soybeans, the supply and demand outlook isn’t promising, though—at least, not yet. August is a critical month but politics are adding additional weight to the shoulders of farmers. If we continue to make more deals like we have with the EU or with Mexico and Canada buying more beans things will look better but the question is, will it be enough? Gulke says there is some optimism but he remains optimistically cautious.
Wheat is the really exciting crop right now, Gulke says. With the problems Eastern Europe, France and Russia are experience in their wheat crops, wheat is seeing straight up movement in the market that probably isn’t over yet.
Overall, we have some headwinds in beans that will take time to overcome but corn is pretty stable and has some potential depending on how August weather turns out.
Listen to Jerry Gulke discuss the crop conditions he’s seeing as he drives through Colorado and the Dakotas and what he’s hearing from other farmers in this week’s Weekend Market Report.
Visit AgWeb.com/Gulke for past reports and Jerry’s weekly column.