Market Analysis
Bull spreads in the corn market got too wide this week, says Jerry Gulke.
Will these changes decrease or increase market volatility?
Don’t hold your corn and expect a basis gain to pay for storage, because it’s unlikely to happen.
The grain markets were in a tug of war this week between declining yield ideas in corn and late week economic concerns.
What will be this year’s actual harvested acreage, and how will weather affect yields on those acres?
Get ready for a big move in corn prices. USDA’s June Grain Stocks report comes out tomorrow morning, and it tends to swing the market.
If the ethanol subsidy is eliminated as some in Congress are calling for, corn stocks-to-use could increase, potentially putting modest pressure on corn prices.
Following Thursday’s USDA reports, the market was full of action. Jerry Gulke says Friday was a wild trading day and that farmers are feeling the lure of $8 corn.
Corn, soybeans and wheat prices dropped like a rock this week, capped off by a WASDE report with no positive news.