Weekend Market Report
Stay updated on grain markets with AgWeb’s Weekend Market Report by Jerry Gulke, president of the Gulke Group.
Jerry Gulke, president of The Gulke Group, says the market is anticipating additional purchases of U.S. soybeans to be announced at the summit, in addition to other agricultural products.
Jerry Gulke, president of The Gulke Group, says technically it is a very bullish to see grain markets making new highs for the year starting in May.
Corn futures scored a bearish lower weekly close for a second week and are now around 30 cents off the highs the market hit during the Iran war.
Jerry Gulke president of the Gulke Group says when a market reacts negatively to positive news that’s not a good sign.
Jerry Gulke, president of the Gulke Group, says the rally in crude oil is about global energy security but it has benefited the grain markets.
Jerry Gulke, president of the Gulke Group, says the recent strength in the corn market is not a result of the Iran war or higher corn prices, but a paradigm shift that happened 18 months ago.
Jerry Gulke, president of the Gulke Group, says while many analysts are pointing to the rally in crude oil and the war in Iran as the reason for the strong grain performance, he thinks the breakout was brewing long before that.
Many will attribute last week’s corn market rally to the cold weather and slowing grain movement from truck to barge. However, Jerry Gulke says the corn market has technically looked good for a while.
Jerry Gulke, president of The Gulke Group, says the report provided some valuable lessons about marketing.
As he awaits official per-acre payment rates from USDA, Jerry Gulke is leaning toward soybeans versus corn, saying the estimated $46-per-acre corn payment is woefully inadequate and “like a bridge to nowhere.”
Jerry Gulke, president of the Gulke Group, says the bearish lower weekly closes for a second week confirms the top is in the soybean market.
Jerry Gulke, president of the Gulke Group, says the close in soybeans was bearish as it confirmed a head and shoulders top by taking out the neckline at $11.13 and closing below that chart area
Jerry Gulke, president of the Gulke Group, says soybeans had rallied into the report as the market priced in additional China demand. So, he wasn’t surprised with the reaction,
Jerry Gulke, president of the Gulke Group, says private estimates for national corn yield range from 182 to 186. However, he expects a bearish report because yields may be higher than expected.
Jerry Gulke, president of the Gulke Group, says the reaction in the soybean market following the announced trade framework between the U.S. and China provides important technical clues for future price direction.
Jerry Gulke, president of the Gulke Group, says he hasn’t missed the government data including the October WASDE.
The price action in corn was impressive to Jerry Gulke, president of the Gulke Group, in part because it came during the gut slot of harvest when farmers are gathering a predicted record crop.
Jerry Gulke, president of the Gulke Group, says the trade news was a game changer for the market. After calling an early low in corn and soybeans, he says Friday’s news and trade action has changed his opinion and he has turned bearish.
USDA’s Quarterly Stocks report on Tuesday provided a bearish surprise for the corn market.
Jerry Gulke, president of the Gulke Group, says the market was disappointed soybeans were not part of the U.S. China trade discussion on Friday and as a result he’s altering his soybean marketing strategy.
Jerry Gulke, president of the Gulke Group, says USDA also confirmed record demand at 16.1 billion bu. That estimate struck him as one of the most important parts of the September report.
Jerry Gulke, president of the Gulke Group, says corn was slightly lower for the week but held support. The performance was a victory, considering the large infusion of bearish news the corn market had to absorb.
Gulke says next week’s action in corn futures is important because a continued rally could provide the first buy signal in the corn market in over six months.
Jerry Gulke, president of the Gulke Group, says he was as surprised with USDA’s 188.8 bushel per corn acre yield as anyone, but their demand projections were even more surprising.
New crop corn closed lower for the week and made new contract lows but there was at least one silver lining in the technical action according to Jerry Gulke, president of The Gulke Group.
Jerry Gulke, president of the Gulke Group, says corn made a bullish weekly reversal and that technical action could signal a bottom in the market.
Jerry Gulke, president of the Gulke Group, says grains posted lower weekly closes as the markets were pressured by ideal weather and ideas of higher yields.