Between the recent collapse in corn prices and new production numbers from South America, the big question going forward for the grain markets remains weather, according to Jerry Gulke, of the Gulke Group in Chicago.
After a volatile week, corn and soybeans did firm Friday, which Gulke attributed to short covering in anticipation of Monday's Crop Progress reports and uncertainty about weather.
“There has been that heat dome that has been coming in and going back out. It may come in and stay for a couple of weeks, and if we get triple digits in some places, the traders will put this thing behind them them ... and say we still haven’t determined this year’s crops,” explained Gulke, speaking to Farm Journal Radio’s Pam Fretwell. "I think we saw some of this Friday. I don't think too many people wanted to be short grain going into the weekend for fear of what might happen Monday."
Beyond Monday, USDA is expected to adjust its yield expectations for corn, soybeans, and wheat in Tuesday's WASDE report, according to Gulke.
Depending on what USDA says, the news could be positive or negative for prices. “We have got a number of problems we could solve there,” observed Gulke, who expects to see increases in exports and reductions in feed grain usage.
Listen to his full comments here: