December corn prices were down almost 10¢, with new-crop corn prices up a penny for the week ending Nov. 18. January soybean prices were down nearly 22¢ and new-crop soybeans were down around 13¢. Both old-crop and new-crop wheat prices were down.
“It seemed like it was a long week because we had the accidental bombing of Poland,” says Jerry Gulke, president of Gulke Group. “Anybody that was short grain got really nervous and grains exploded at the beginning of the week.”
But, he says, that was it for the week, with the market backing off.
The corn market posted a key reversal, where it traded lower and zoomed higher. Wheat and soybeans did the same, Gulke says, but corn is the only one that held.
Higher export sales this week helped support corn prices, he says.
“Mexico, our favorite partner, brought corn and maybe that was because their president said they are not going to use GMO corn after a certain date in the future,” Gulke says.
Soybeans also had a strong week in exports.
“This week could have been worse, but we had a little bit of positiveness,” he says.
Thanksgiving Trend Change?
Corn and soybean prices have essentially been in a sideways trend for a while, Gulke says.
“My suspicion is if we can take out this week’s highs next week or any time after that, it’s probably going to be due more to questionable weather in South America; that would probably force soybeans to go higher,” he says.
Corn prices, Gulke says, are no higher now than they were in late August.
“So, we’ve done all that volatility and stayed in a sideways range,” Gulke says.
A catalyst will be needed around Thanksgiving, he says, to break to the upside or downside.
Gulke Group Winter Conference
The winter Gulke Group conference is set for Dec. 15 and Dec. 16 in Lombard, Ill., at the Embassy Suites. Speakers include Jerry Gulke, Drew Lerner, Michael Drury and Roger Wallace.
Learn more and sign up at GulkeGroup.com
Check the latest market prices in AgWeb’s Commodity Markets Center.
Jerry Gulke farms in Illinois and North Dakota. He is president of Gulke Group Advisory Services. Disclaimer: There is substantial risk of loss in trading futures or options, and each investor and trader must consider whether this is a suitable investment. There is no guarantee the advice we give will result in profitable trades. Past performance is not indicative of future results.
