After all the volatility this week, corn prices showed little change this week. July corn prices were down 1¢ and December corn prices were down 2¢, for the week ending May 27.
All classes of winter wheat were lower from 11¢ to 17¢, while Minneapolis wheat was up 26¢ for the week
But soybean prices posted major gains. July soybean prices were up nearly 26¢ and November soybean prices were up 21¢.
“Soybeans were really interesting this week,” says Jerry Gulke, president of Gulke Group. “Prices have not been able to top we put in in February, the day of Russia’s invasion of Ukraine.”
Gulke says there’s an old saying that if you knock on a door long enough, somebody’s going to open it.
“Soybeans have been knocking on that door but finding resistance,” he says. “Especially at these high price levels for soybeans.”
What is also interesting, Gulke says, is basis prices for soybeans is very strong in the U.S.
“People in the business are telling me they just can’t source beans,” he says. “They’ve offered you to buy a few loads here and there at outrageous prices over the basis.”
What could derail these high soybean prices?
“Some fundamental factor that would come out and show demand is not what we thought,” Gulke says.
Looking forward, he says, the market will be driven by weather and whether or not we need an additional weather premium.
Energy Market Moves
Natural gas prices have made new highs, again. Prices of crude oil, heating oil and gasoline were also up for the week.
“You have to wonder what happens if the escalation of the war gets worse,” Gulke says.
Planting Progress
Gulke finished planting last week. “The rains came just like they should,” he says. “We’ve had good emergence.”
In North Dakota, where Gulke’s daughter farms, the weather has not been near as cooperative. Gulke says even though crop insurance deadlines have passed, they plan to keep planting.
“When you’ve got $15 November beans, you’re OK with having a little less insurance coverage,” Gulke says. “They don’t like prevent plant, so we’ll see.”
Check the latest market prices in AgWeb’s Commodity Markets Center.
Gulke Group 2022 Summer Conference: The conference is set for July 14-15, in Lombard, Ill., at the Embassy Suites. Guest presenters will include William Wilson from NDSU, Glen Buckley of NPK Fertilizer Advisory Service, Drew Lerner from Worldwide Weather, Roger Wallace (livestock/economy outlook) and Jerry Gulke.
For more info contact Jamie at 707-365-0601 or info@gulkegroup.com
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.
