The grain markets showed some interesting moves this week. Jerry Gulke explains the technical action of grains and how farmers should respond.
The grain markets have been digesting a lot of information lately, following last week’s Pro Farmer Midwest Crop Tour, some recent USDA reports, as well as harvest kicking off in the South.
Jerry Gulke, president of the Gulke Group, says it is easy for farmers to get overwhelmed by all of this information and be mixed on marketing moves.
"Everyone has an expert out there," he says. "So, what is the truth?" Gulke says the market does a good job of assimilating all the information out there and determining what grain is worth.
Hear Gulke's full audio analysis:
With harvest just around the corn, Gulke says it’s time for farmers and those involved in the grain markets to quit arguing about acreage numbers or yield expectations. "Farmers need to understand that we have way more grain then we could possibly use this year. So, prices aren’t probably going to go $6.50 or $7."
Soybeans have a bit of a different story. But, even if the U.S. crop isn’t as large as early predicted, Gulke says there’s another crop growing in South America.
"This is a real difficult time of the year," he says. His advice is to figure out what marketing tools are in your comfort zone and put them into action.
Have a question for Jerry? Contact him at 815-721-4705 or firstname.lastname@example.org.