As the energy market worsens this week grains followed the downward trend
This week, corn closed down a nickel, soybeans were down a dime and wheat closed down six or seven cents. Despite this collapse in the energy, there is a silver lining for farmers. It offers a grand opportunity for farmers says Jerry Gulke, president of the Gulke Group. This collapsing energy market could offer significant savings if fuel is contracted while prices are low. Farmers could see as much as a 40 cent per gallon savings depending on their area, which could help going into the new year. Picking the bottom however is like catching a falling knife.
The other good news this week was the bullish Cattle on Feed report, released on Wednesday, Nov. 21.
“We had a Thanksgiving gift in the Cattle on Feed report. It showed less cattle on feed and less placement,” Gulke says. “Unfortunately,” he continues, “is justifies why USDA has been lowering feed usage,” which in turn means we consume less corn.
As we head into a new month, we’re waiting to see if a trend change is coming or not and the potential for a new trade deal with China remains in the realm of the unknown. Gulke believes something is bound to happen but we’ll have to wait and see how the Trump/China trade saga plays out. Hopefully, we won’t have to wait much longer as they are scheduled to meet on Dec. 1.
Listen to Jerry Gulke’s full commentary above.
Read more from Jerry by visiting AgWeb.com/Gulke and read his latest column, Technically Speaking: Storage Fiasco.
Jerry discusses his trial offer around the 11:10 market in the recording. To learn more about and take advantage of this discount offer that ends November 27, call 480-285-4745 or 707-365-0601 or email firstname.lastname@example.org.