After several weeks of volatility, the grain markets were relatively quiet this week. U.S. soybean harvest is past the halfway point and corn harvest is nearing it, yet prices are staying strong. Could this be a positive sign for farmers?
December corn prices were down 5¢ and November soybeans were up nearly 11¢ for the week ending Oct. 21., Chicago wheat prices were down 9¢. However, soybean oil prices were up 6¢ per lb. and canola prices were up $36 per ton.
“I would have expected more harvest pressure given the weather we are having,” says Jerry Gulke, president of Gulke Group. “A nickel in corn is not even a typical day’s range, usually it 10¢ or 20¢ cents for corn.”
Gulke says after how high grain prices have been this year that most farmers have empty grain bins.
“So, we’ll fill them first and then see whether what’s left over is going to come to market at a lower price,” he says. “We’re going to see some rain next week that’s well needed, which will put a stop to harvest. But until then there’s going to be a lot of harvesting. So, this is all really good news that prices are at these levels at harvest.”
Gulke has finished combining his soybeans and is now combining corn.
“I talked all spring and summer about expectations of having a record crop, and so far, that’s been true,” he says. “It’s dry and it’s beautiful, and the crop is coming out of the field at about 18% moisture. With a couple more days of 70° weather, we will be done. It’s been a while since I’ve delivered corn with no moisture discounts.”
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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.
