Commodity prices moved higher this week, with soybeans and wheat showing particular strength.
“Soybeans have been knocking on the door of new price highs for the year,” reports Jerry Gulke president of the Gulke Group.
He notes that July soybean prices were up just over 48¢ and November soybean prices were up 40¢.
Wheat had a positive pricing story to tell this week as well, with July wheat up 32¢ and September wheat up nearly 34¢.
Corn prices climbed higher this week though not with the same level of momentum Gulke sees in soybeans. July corn prices were up 46¢ and December corn was up nearly 31¢.
Gulke believes corn was working to regain some pricing momentum after struggling some last week.
“If you look at corn versus soybeans, the beans have broken to the upside it seems to me, while corn seems to be making lower and lower highs on a weekly basis and lower and lower lows,” he says. “You could say corn is in a minor downtrend and 50¢ off the highs of 2022.”
The Role Inflation Plays
Gulke says he is watching U.S. inflation numbers closely and evaluating what role they play in commodity prices.
“The report for the month of May was higher than most trade analysts and most stock market analysts had expected and that’s taken the stock market down – at one point almost 800 points,” he says. “This inflation thing probably will affect us more down the road. We need to watch very closely that our demand holds up.”
Gulke adds that the World Supply and Demand Estimates (WASDE) released Friday had little impact on commodity prices this week. He anticipates the bigger market mover could be later this month when USDA updates grain stocks, as well as issues an updated look at U.S. crop acres.
USDA will release its Acreage and Grain Stocks reports on June 30. In the July round of reports, USDA tends to revise yields based on growing season developments.
Check the latest market prices in AgWeb’s Commodity Markets Center.
Gulke Group 2022 Summer Conference
The summer 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 economic outlook), Michael Drury of McVean on domestic and global economy, and Jerry Gulke on marketing strategies.
Get in Touch with Jerry
Do you have questions for Jerry? Contact him at info@gulkegroup.com or 312-896-2090 or 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.
