When Jerry Gulke looks at the April 9 World Agricultural Supply and Demand Estimates (WASDE), he sees support for corn, worries for wheat, and lots of unknowns for soybeans.
“The market was looking for a 100 million bushel increase in ending stocks [for corn],” says Gulke, who is a farmer in Illinois and the president of the Gulke Group in Chicago. “It actually only went up 50 million bushels. … We’re not deteriorating the demand base on that stuff yet. Of course at these low prices, we shouldn’t, so that was good news. We kinda kept that hope alive.”
When it comes to wheat, though, he’s crossing his fingers.
“If we get wheat below $5, boy, we have more wheat than we estimated or have dialed in,” says Gulke. “Of course, $5 wheat becomes feed wheat, which then competes with corn.”
“I think we just need some more time to see how this evolves,” he added.
Listen to Gulke's special report on Farm Journal Radio:
The same goes for soybeans. While market watchers expect farmers to plant more soybeans this spring, no one’s quite sure just how many more—or how this spring’s weather might push some fields from corn to soybeans.
“That debate goes on,” said Gulke.
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