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 even though the quarterly stocks number for corn came in below the trade guess, he thinks it is more bullish than it looks on the surface due to hidden corn disappearance.
Jerry Gulke says he’d like to see another higher weekly close next week to help confirm the bottom is in the soybean market as well as a close above $12. A higher monthly close would be even more convincing.
Gulke has heard the argument that the funds hold a near-record short position in the grain and oilseed complex and will eventually need to exit those positions. However, he says it’s not that simple.
Jerry Gulke, president of the Gulke Group, spoke to a full house at Top Producer Summit this past week. “Producers are finally interested in marketing now that prices have fallen further,” he says.
Shipping disruptions and higher freight costs are to blame for the basis collapse and the large carries in all the major grains, says Jerry Gulke.
“I don’t think we are going to see huge losses in prices from here forward, but these are not exciting prices,” says Jerry Gulke, president of the Gulke Group.
Jerry Gulke, president of the Gulke Group, considers the bounce off the lows a victory: “This was a win, even though we had markets down a little bit for the week.”
Prices are holding within trading ranges due to the lack of farmer selling and Brazil production concerns.
The world stocks to use ratios were not raised in the December WASDE, which was a victory for the market.
The focus of the soybean market continues to be South American weather and crop expectations. Jerry Gulke says whether or not forecasted rains occur will set the direction for the market into next week and beyond.