December corn prices were up 7.5¢ and November soybean prices were down 15.25¢ for the week ending Oct. 16. December wheat prices were up 33¢.
“Corn has exceeded the 2020 highs,” says Jerry Gulke, president of the Gulke Group.
The strength in corn prices is related to healthy harvest progress, he says. As of Oct. 11, 41% of the U.S. corn crop had been harvested, which compares to a five-year average of 32%.
“There are ideas out there that once harvest is half done the market looks at it two ways,” Gulke says. “One is that you can’t hurt this crop anymore. The bullish side is if buyers haven’t bought enough corn off farmers and they get it locked up in their bins, it may be a lot harder to buy corn later on than it is now.”
Although December corn prices were up 7.5¢, Gulke says, they did close 6.5¢ off the highs to where it was during the day. “It couldn’t muster the close above $4.05, which is kind of a benchmark in my mind.”
While both corn and wheat prices took out previous highs, soybeans did not. Even with soybean prices ending lower this week, Gulke says some people are talking about $11 soybeans being in sight—maybe even $12 pending South American crop problems.
Hot and dry weather forecasts around the globe are supporting wheat prices, Gulke says.
In addition to this week’s grain price moves, Gulke discusses the U.S. dollar index and how currency rates impact ag commodities. You can read more on this subject in his upcoming Top Producer article.
Read More
Jerry Gulke: Is It Time to Reward the Market?
Jerry Gulke: Is the 800-lb. Gorilla Back?
Jerry Gulke: Lessons Learned in 30 Years of Grain Marketing
Find more written and audio commentary from Gulke at AgWeb.com/Gulke
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.
