This week’s grain prices may have you feeling more like Thanksgiving is ahead instead of Memorial Day weekend. This week, we saw new 2018 contract highs for December corn and July Chicago wheat.
“In spite of the volatility, we’re still in a bullish market,” says Jerry Gulke, president of Gulke Group.
Earlier this week, American and Chinese leaders declared an economic truce, putting planned tariffs on hold. In a statement released by the White House, China stated it has agreed to “meaningful increases in U.S. agriculture and energy exports.” Details will be worked out later.
The trade framework appears to be a game-changer, Gulke says.
“With the good news we had, we shouldn’t see grain prices go below last week’s low,” he says. “That should draw a line in the sand.”
Weather on the Horizon
With the Chinese agreement in place, the markets will once again shift their focus to the weather, Gulke says.
The 6-to-10-day forecast shows temperatures are above to much-above normal levels for most of the western two-thirds of the U.S.
On Tuesday, May 29, visit AgWeb.com/Gulke to read the next installment of Gulke’s commentary series titled, “The Rest of the Story.”
Rest of the Story: China Framework Agreement
05/22/2018 11:35 AM
The thought that a rising tide raises all ships suggests that increasing trade should be palatable to Republicans and even the Kennedy Democrats (if there are any left) would agree.
Rest of the Story: Has this Ship Sailed?
05/14/2018 11:19 AM
Jerry Gulke is watching several things this week as planting season will soon be over and too late for price to influence planting decision, as the ship will have sailed.
When Bad Things Happen After Good Reports
05/12/2018 04:00 A
The May 10 USDA reports had the potential to send the markets higher. The markets did go up, but that price jump vanished. The corn, soybean and wheat markets all closed lower for the week.