Wheat Takes a Hit on Russian Rhetoric

September 7, 2018 09:42 PM
Grains are marking time as we go into the harvest season with corn and soybeans virtually unchanged but wheat took a hit this week due to Russian rhetoric regarding exports.

Grains are marking time as we go into the harvest season with corn and soybeans virtually unchanged, up only a few cents on the week. Wheat on the other hand took a hit this week, down 20 cents across the board due to Russian rhetoric regarding exports.

“I think the market got a little ahead of itself in the wheat story,” says Jerry Gulke, president of the Gulke Group.

Fundamentally, he says, nothing changed in the wheat sector. But after Russia’s Minister of Agriculture announced there was no imminent need to curb exports and given Russia has become more competitive with the U.S. due to their currency issues, it’s equated into a retraction of the U.S. wheat market this week.

Corn is seemingly treading water right now with talk of good yields, as good as last year but not any better according to what Gulke is seeing and hearing from farmers. Soybeans are in the same boat as corn as far as treading water goes but this year’s yields might surprise some folks. From what Gulke is hearing from both clients and non-clients across the country, this could potentially be the best soybean crop we’ve ever seen. From what he’s seen in his drives through farm country, Gulke says he’d have to agree.

Next week, USDA will release their monthly Crop Production and World Agriculture Supply and Demand Estimates (WASDE) reports. Listen to what Jerry Gulke predicts will be on the reports (11:48) and what it could potentially mean for the markets on this week’s Weekend Market Report.



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Spell Check

Lee M Kissinger
9/12/2018 09:21 AM

  I respect what you market analysts do. But you aren't the fake news media. You deal with operators that are so full of themselves that they could never report a poor yield because they are better than everyone out there. And you all eat that information and extrapolate those numbers into fictitious overstatements before the fact. We get so little time to make decent sales and with all this information, true or not given to impressionable traders the farmer get the short end everytime. We don't need that type of help, we can go broke without that. Why don't you all learn to keep your mouth shut till you actually know something? That might be a better idea! Because the information age does not seem to help if it keeps driving the price below cost it is just hurting most of us!

John link
Washington Court House, OH
9/8/2018 10:39 AM

  I will keep an eye on wheat

auburn, IN
9/9/2018 08:53 PM

  to bad you don't drive through the bad areas, seems like almost every state has bad areas, pro crop tour said the crop was very variable, good crop - probably , I'm sure you will hear of the braggers on their fantastic yields , but not from the poor crops