Gulke: Weather Remains Big Question for Markets

July 9, 2016 07:00 AM

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:

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Spell Check

Beaver City, NE
7/9/2016 09:54 AM

  SW Nebraska. We have been blessed with great rains. Wheat harvest has been a battle with rain delays however yields are best ever. Dry land corn/beans look like irrigated.

Grand Forks, ND
7/9/2016 08:11 AM

  How does everyone's crop look. You go north into NE North Dakota and NW Minnesota and there has been way to much rain and they keep getting more. Go south and we need rain and the corn is going backwards.

Vater, MN
7/9/2016 09:40 AM

  Live in central MN , dry land corn is about 4-5 days away from taking the disk too it , maybe knee high with 2-4 leaves firing on plants. Irrigated ground looks good , but even irrigators are having a hard time keeping up . Soybeans are not even close to being canopy , just too dry .