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.