October is ending on a high note for the corn and soybean markets.
December corn prices were up 30.5¢, for the week ending Oct. 29. March corn prices were up 30¢. November soybean prices were up 15.25¢, and January soybean prices were up 18.75¢. December wheat prices were up 16.75¢ and Minneapolis wheat up 43.75¢.
One of the big factors impacting the grain markets are fertilizer prices, says Jerry Gulke, president of the Gulke Group.
“It is a very expensive here, even more expensive in Europe and just as expensive for Brazilian farmers,” he says. “That has the markets concerned we may not plant as much corn, which made corn prices go up.”
What is also interesting, Gulke says, is old-crop grain prices are going up.
“There’s talk of a strategic reserves type of situation where world buyers would stock up on various grains,” he says. “So that is probably making other buyers want to get their hands on grain now.”
As of Oct. 24, USDA estimates 66% of the U.S. corn crop is harvested and 73% of the U.S. soybean crop. Yet, this week rain delayed harvest in many parts of the Midwest.
“We’re getting rained out,” Gulke says. “I have some unsold grain, but right now every day that it’s unsold my earnings per acre go up by around $10, unless I have field losses. So, I’m not so concerned about being delayed in harvesting because the price is going up.”
For corn and soybean harvest, once you get past 50% or 60%, you’re nearing complete and there should be harvest price pressure, Gulke says. But currently there isn’t. All of these dynamics are playing into the 2022 acreage battle.
“The market is apparently begging for grain and is giving you the incentive to not put grain in the bin, instead bring it on the marketplace,” Gulke says. “Ethanol plants are begging for corn and making a lot of money crushing corn for ethanol. The crushing market in soybeans is also strong.”
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. 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.
