Corn and soybean prices are down from market highs for the year, and a weaker dollar Friday and good global demand should boost U.S. ag exports further, according to Jerry Gulke of the Gulke Group in Chicago.
“We are the sole source pretty much now into the first quarter of 2017 for beans because they (South America) won’t have them to sell. We have a tremendous book of beans, and by book, I mean export sales that have got to be delivered…” said Gulke, speaking with Pam Fretwell of Farm Journal Radio. “So you have a situation that’s fundamentally bullish and certainly more bullish at $9.50 or $9.60 beans than when they were at $11 to $12.
It’s bringing out plenty of end users interested in getting their hands on U.S. beans. Even China has bought around 25 million bushels of old-crop soybeans for August delivery, Gulke noted.
The weekly key reversal down in the dollar should also give the markets a boost, including meat, as a softer dollar makes U.S. soybeans and other products more appealing on a global stage. “We can compete very well with South America, at least until next March,” Gulke said.
He added that weather will become even more important now for beans, but that the jury is still out on any effects that warm nights have had on corn filling in the West and areas of southern Illinois and Indiana.
Listen to Gulke’s full comments about grain exports, livestock and the U.S. elections here: