Collapsing Energy Market Depresses Ag Commodities

November 23, 2018 02:55 PM
 
 

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 info@gulkegroup.com.

 

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Comments

 
Spell Check

Rick
Jonesboro, AR
11/26/2018 10:49 AM
 

  Yawn... Another day another factless rant by PJ the troller! Some things never change!

 
 
Allan
Small town, IN
11/26/2018 12:42 PM
 

  PJ , you forget to mention Obama’s, G.W ‘s or Clinton’s millatary service. Probably because you can not expect for W’s National guard service and you want to talk about draft dodging ???? Just curious if you ever served wich I would hope . Four generations here but we do not tute our own horns like you like to.

 
 
PJ Jahn
Ptown, IL
11/26/2018 11:41 AM
 

  Earl, by reading your comments, it's very easy to see you are afflicted with "Poisonous Partisan Politics". Perhaps you could lean on that as an excuse to not adhering to the truth??? A for me, I have been absolutely non partisan ever since 1992. By the truth spoken, and taught by H.Ross Perot. This allows me to be provocatively aggravating to the likes of you. Or any political party, person, or persons. I don't have to hide from the truth. And the truth means everything to me. Perot explained why "VooDoo" economics always ends in economic failure. George H. Bush who coined the phrase, and named "VooDoo Economics" for what it is, not knowing at the time of doing so, that "VooDoo Economics" would cost him being re elected for a second term as President due to economic recession. The last of 3 recessions produced by "Reaganomics"!!!!!!! Nothing but "reckless, irresponsible economic policy" as my banker stated. Reagan was a treasonous liar!!! You don't appear to care for Obama, just remember the "VooDoo" collapsed economy he was handed by George W. Bush. Even Alan Greenspan warned against W's "VooDoo"!!! And the failing economy it would produce if it was allowed to continue to the drain the U.S. Treasury. Oh, the truth is G.W. Bush instituted the cell phone welfare/handout, not Obama!!! Perhaps you can't see the forest for the trees??? And remember this also, U.S. farmers are the wealthiest welfare recipients in our country!!! As for Lying, Deceitful, Traitor, Conman Trump's respect for our Military??? Yeah right!!! Such as "Cadet Bone Spur" for multiple draft dodging, bogus deferments??? How about his disgraceful conduct in France to our Veterans, and the ceremonies of respecting that some of them had ultimately gave their lives to preserve our countries freedoms. Hows that work for you Earl?? What do you think of Nazi's??? Then there's Trump's total desecration of The Office of the President of The United States of America??? Yep, good luck with all that Earl!!!

 
 
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