USDA shocked the market this morning as it projected the national corn yield at 153 bu./acre. Leading up the report, Jerry Gulke, President of the Gulke Group, says the market was trading yield expectations in the 155 bu./acre range.
They’ve recognized there’s a problem out there. I think they wanted to get ahead of it a little bit for fear of being criticized,” Gulke says. “They left the acres the same, but lowered the harvested acres by 500,000. What was interesting in the corn was they didn’t lower any of the acres in those four states (North Dakota, South Dakota, Montana and Minnesota) they resurveyed.”
Interestingly, the majority of the prevent planting in those states was in the Durum and spring wheat markets. Corn carried the spring in the traditional wheat markets of the northern plains.
Jerry Gulke, president of the Gulke Group, has been fielding questions from farmers wanting to know how long the explosive rally could last and how high prices could run?
Don Roose with U.S. Commodities says the grains have seen rotating leadership but the bull market is currently being led by wheat and will needs continue Black Sea headlines to keep moving higher.
Scott Varilek with Kooima Kooima Varilek says after a bounce on Thursday many producers were asking if a bottom was starting to be forged but the negative stories won’t die down.
