Grain markets collapsed this week posting lower weekly closes again on massive fund selling. July corn was down 30¢ with December losing more than 20¢. July soybeans slid 30¢ with November down 22¢. Wheat hit new contract lows in all three classes with July Kansas City wheat down 48¢, July Chicago 38¢ lower and September Minnesota wheat fell over 40¢
Jerry Gulke, president of the Gulke Group, says the ugly week may be the first signal of a major reset in the market similar to 2013. It was also a hangover from the realization the U.S. is not globally competitive. That was solidified when China canceled nearly 24 million bushels of U.S. corn — and Gulke expects additional cancellations. He says lower prices and the record crop in Brazil continue to undercut the U.S. in the corn and soybean markets. In the wheat market its all about Russia.
“It’s as if the market is finally saying, well now we know what demand is out there. It's questionable. We probably are growing too much of everything,” Gulke says.
By MICHELLE ROOK
April 28, 2023
agweb.com
