Weather, Global Uncertainties Unsettle Markets

June 18, 2016 07:00 AM
 Weather, Global Uncertainties Unsettle Markets

Weather worries and global uncertainties in Britain and China are driving market volatility right now, according to Jerry Gulke, president of the Gulke Group in Chicago.

The recent market swings “just tell you how much uncertainty there is in the world,” said Gulke, speaking with Farm Journal Radio’s Pam Fretwell. “There are uncertainties about what’s going on our economies and what kind of a crop we are going to produce, and whether China going to buy it,” said Gulke, who also mentioned the upcoming vote in Britain on whether to leave the European Union.

As if that weren’t enough to stir markets, the weather is also a factor at this time of year. “We’re in week two or three of a weather market, and normally you see about a six-week weather market, which takes us into July,” Gulke explained, adding: “That’s going to keep things crazy. We still have this divergence of opinion between the major weather people … The question is: Is somebody going to be wrong and the other side right?”

For example, weather forecasters are looking at the El Nino to La Nina transition and whether the triple-digit temperatures in the West will migrate East to the Corn Belt and “cook this corn at the most inopportune time,” noted Gulke.

“Right now it seems like a crapshoot because there are two sides of it,” Gulke noted. “Both sides are hanging out on a limb, waiting for somebody to saw them off. … There’s a lot of concern out there.”

Listen to his full comments here:

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Spell Check

Trenton, NE
6/21/2016 03:41 PM

  The farmer doesn't control the prices of milk or anything, the government markets tell him how much they will pay him for it, then they sell it to you. If there was a drought you wouldn't be able to buy milk or anything eatable at the store because the farmer wouldn't have extra for you just enough for his own family, you would have to get your own by milking your own cow.

Mark C. Daggy
Humboldt, IA
6/18/2016 04:20 PM

  Knowing the Creator is in absolute control of every atom with in the entirety of creation, hoping and praying for a 1934 thru 1936 drought across this nation and the world. Farmers seem to have little self control on controlling production. An example would be: milk at $5/gallon in the recent past and now $2.35 at Costco or eggs at $3.60/dozen 1 year ago and now 68 cents/dozen. Doubling or even tripling the cost of food would also bring a spiritual revival in America or it will harden the hearts of those who have decided to be "God haters." Some of my blogs on AgWeb get scrubbed...I guess its their choice to deny the absolute power of the Creator. Like an ostrich poking its head into the sand as the lion approaches, the lions destructive power is still there.


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