Heading into the Christmas holiday, the grain markets are full of presents. Old-crop corn prices are over $6 per bushel and old-crop soybean prices are trying to break out of a sideways trend, staying well above $13 per bushel. Wheat prices are well above $8 per bushel.
What do we want to see happen next week as we close out 2021? Jerry Gulke, president of the Gulke Group, provides his take.
Corn
“Corn prices at $6 have been a target for many,” he says. “It is sort of a psychological and fundamental hurdle.”
Ideally, Gulke says, you want to see two consecutive closes above that level.
“Holiday trading can be tricking,” he says. “I want to see if we can sustain a price over $6 until after the holidays.”
Soybeans
“We’ve had a sideways trading range for November 2022 soybean prices,” Gulke says. “There has been a lot of talk about more soybeans and less corn next year because of the fertilizer prices. But natural gas prices have dropped recently.”
This battle for acres is supporting soybean prices, he says.
“What you don’t want to see is have a breakout to the upside, selling come in and it falls back down,” he says. “We don’t want to see a false breakout.”
Wheat
Gulke says, in his mind, wheat topped $1 per bushel ago. As a result, the wheat market is facing headwinds.
“Wheat is grown in almost every county,” he says. “So, we are a small fish in a big pond. It is really up to Russia, which is certainly always threatening to raise the export tax, which raises the price a little.”
Winter weather in the U.S. will be key to see how the crop shapes up.
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.
