Between the dollar’s collapse, the crop situation in South America, and all the unknowns about this year’s planting and growing season, the market doesn’t know what to think.
“The market is about as confused as a lot of other people out there,” said Jerry Gulke, president of the Gulke Group in Chicago, speaking with Farm Journal Radio’s Pam Fretwell. “We just don’t have the information yet as to planted acres and how we are going to get off to a good crop. Is it going to be super-dry, (with farmers) planting fencerow to fencerow? Or are we going to have wet weather and get an early frost?”
Gulke’s advice? Don’t worry about it right now.
“We have good demand globally,” he said. “Say what you want about China—they’re eating beans. We’re not doing anything to curb demand with these low prices.”
Listen to his full comments here:
Instead of fretting about the grain and soy markets, growers should be concentrating on shaving input costs on seed, fuel, and fertilizer. “We’ve got clients who are seeing 99 cents for diesel fuel delivered to the farm,” said Gulke, who urged farmers to make some purchasing decisions if they haven’t already. “We may have seen the low in fertilizer for the spring,” he warned. “Now’s the time to capture another $5 or $10 a ton.”
What are you seeing for fuel, fertilizer and seed costs this spring? Let us know in the comments.