We saw higher weekly closes in all of the grains markets, said Michelle Rook and Randy Martinson in this week's Agweek Market Wrap.
Martinson said it was the Minneapolis market gaining the most, because that's where the main focus is for the wheat market. The Minneapolis exchange closed not only above $9, but at the $9.15 target that Martinson has been referencing during past weeks.
After hitting the target, Rook asked where we can go from here.
"When you look at the chart we don't have much above us here, but the next line would be somewhere in that $10.45 area," Martinson said. "We could see this market go quite a bit higher."
With the analog year for comparison being 1988, could we see price levels get that extreme?
"I don't know if we have that kind of movement in this thing or not," Martinson said of the future compared to the late 80s. "But there are some thinking because of the demand of spring wheat and how tight the stocks can get to be, looking at the numbers, we could see spring wheat stocks get down to 40 million bushels, which would cause this market to see quite a bit of a bounce."
The World Agriculture Outlook Supply and Demand Estimates on Monday showed ending stocks for spring wheat significantly lower than the same time last year. They came in at about 119 million bushels, said Rook.
"Which is basically cut in half from the previous year," Martinson said.