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:
AgWeb encourages lively, constructive discussion on our site, but ask that users remain civil when commenting. Comments insulting any person or groups of people are not permitted on this site and will be removed as they are discovered.