… “Now we’re sitting here with demand and not enough supply,” he says. “So, the market is begging those with grain to sell by offering a lot more today than later on.” Gulke says his concern with these high prices is demand destruction…
Jerry Gulke: Are We Witnessing a Paradigm Shift in Commodity Demand?
By Sara Schafer, AgWeb
April 30, 2021
The markets were active this week, with May 2021 corn futures topping $7. July corn prices were up 40.75¢ and July soybean prices were up 19.50¢, for the week ending April 30. July wheat prices were up 23.50¢.
The big market moves this week show just how tight the supply situation is for commodities, says Jerry Gulke, president of the Gulke Group. Export, ethanol and livestock feed demand are all strong, rebounding from lower levels during the last year.
“Now we’re sitting here with demand and not enough supply,” he says. “So, the market is begging those with grain to sell by offering a lot more today than later on.”
Gulke says his concern with these high prices is demand destruction.
“The objective of the market is to curb demand,” he says. “When we had $7 corn back in 2011 and 2012, we said there’s nothing you can do with $7 corn. You can’t feed it, you can’t grind it, so you can’t make money with it. But these are different times. They say 65 is the new 40. Well maybe $10 corn is the new $7 corn, relative to everything else.”
This has been a demand-driven market, Gulke says...
more, including audio [11:43 min.]
Outlook bright for beef industry
Jeff DeYoung, Illinois Farmer Today
via AgUpdate - Apr 30, 2021
Like most sectors of agriculture, COVID-19 took a bite out of the cattle industry. But nearly 14 months after the start of the pandemic, Dan Loy sees brighter days ahead.
“COVID hit the Iowa cattle especially hard, and January’s (USDA) cattle numbers were down more in Iowa than the U.S. numbers,” says Loy, an Iowa State University Extension beef specialist and director of the Iowa Beef Center. “But with what we are seeing now, I think we’re poised to do very well.”
According to the USDA numbers, the total cattle inventory in Iowa on Jan. 1, 2021, was 3.65 million head, down 5.2% from a year ago. Iowa ranks 8th nationally in total numbers, and 4th nationally in cattle on feed, trailing Texas, Nebraska and Kansas.
A total of 1.722 million fed cattle were marketed in Iowa in 2020.
Loy says COVID not only forced temporary shutdowns of processing plants, but says the demand for ethanol co-products made finding feed more difficult...
U.S. Beef Industry Statistics ...
Top 5 States for Cattle on Feed (Jan. 1, 2021) ...