"It was an exciting week for corn and soybeans," says Jerry Gulke of the Gulke Group. "Today corn blew through $5 and closed at $5.13; soybeans made new highs. We aren’t quite sure what the main reason was but there were plenty of rumors, ranging from disappointing yields in Illinois to billions of outside oil money entering the market. I fully expect the market will look at $6 as a level to curb demand in corn."
"We’ll need more acres next year, and the expected three to four million added wheat acres will make them harder to come by," he adds. "Will the market have to convince winter wheat growers in the southern Corn Belt to tear up wheat and plant corn?
Gulke says he’s letting his powder dry for 2011 sales. "If you haven’t already sold some of this year’s crop, about all I can see doing is buy put options under the market and roll them up as it rises. It’s better to waste 10¢/bu. for every 30¢ rise so that when it does turn, you’ll be glad to have those puts."