Weekend Market Report
Stay updated on grain markets with AgWeb’s Weekend Market Report by Jerry Gulke, president of the Gulke Group.
From planting delays to governmental influence, the grain markets are being impacted by a plethora of factors.
Price discovery suggests price will go high enough until demand is curbed sufficiently so we will not run out of stocks, but someone(s) might have to use less.
This week corn prices topped $8 per bushel and soybean prices topped $17 per bushel. With slow planting progress, these prices could be trying to attract or commit acres to certain crops.
The grain markets posted another healthy week of higher prices. But are these prices getting too high?
The March 31 reports from USDA provided the markets with a few surprises. Did they reset the tone for prices moving forward?
Corn prices are above $7.50 per bushel and soybean prices are near or above $16 per bushel. As prices stay elevated, will demand diminish? Time will tell, says Jerry Gulke, president of the Gulke Group.
Price rationing could last at least 15 months, or until the 2023 South American soybean crop is seen as a record.
The world changed quickly over the last days, requiring a reassessment and perhaps “reset” in thinking.
“Exciting times I think are not behind us yet,” says Jerry Gulke, president of the Gulke Group. “Price volatility is going to be extreme from one week to another.”
Last year, prices rallied from January to May, and a repeat certainly is in the cards.