Never doubt the power of weather to move the market.
At the beginning of this week, “wheat was kinda a ho-hum thing because there wasn’t any good news or bad news” for the crop in Tuesday’s USDA numbers, according to Jerry Gulke, president of the Gulke Group in Chicago and a farmer in Illinois.
“Since then, wheat of course took off and went up--strongly—yesterday on news that there might be some wheat that got killed in the frost” and that more of the crop might be at risk, according to Gulke,
“It was 29 degrees north of Minot, North Dakota this morning where my son-in-law and daughter farm,” Gulke said. “That doesn’t bode well. … Wheat has nine lives, but the market certainly got concerned.”
Listen to Gulke's comments on wheat, weather, and Informa's increase in soybean acreage estimates here:
Those weather concerns translated into a 28-cent gain for wheat for the week.
Will something similar happen with other crops? Maybe.
“A lot of traders think that’s a precursor for what could happen to corn,” said Gulke, pointing out that much is still unknown about corn in terms of planted acreage and yield.
“The market still has, I think, a little uncertainty, and that’s good for us,” he said. “At least it stopped us from going down, and maybe we’ll have a better handle on our yield when the market finally decides it either wants to head back down or not.”