Jerry Gulke discusses the U.S. dollar, harvest yields, and the cattle market in the Weekend Market Report.
The stock market may not have liked Friday’s employment numbers, but the reaction--and its impact on the dollar--suggests good things for farmers in the month ahead, according to Jerry Gulke, president of the Gulke Group in Chicago.
“We have the beginnings of what we call, from the technical standpoint, a monthly sell signal in the dollar, which is exactly what we need,” said Gulke, speaking with Farm Journal Radio’s Pam Fretwell. “That would be the first sell signal in the dollar since we had the buy signal perhaps two months ago.”
A strong dollar, of course, has made farm exports, especially wheat, too expensive on the world market for many buyers.
Listen to Gulke’s full comments on the dollar, harvest yields, and the cattle market here.
These movements in the dollar could strengthen currencies in other countries, such as the Brazilian real, making U.S. exports more price-competitive on the global market.
“That’s exactly the thing we need to see—not have our production get any better, but get a little less; have demand stay solid, and have us become competitive again,” Gulke said.
He pointed to the China’s recent record-high soybean purchase agreement with the U.S.
“That sends the signal that demand’s not going away just because China’s got 5% or 6% growth rate, instead of 10% or 11%,” Gulke said.
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