Gulke: 'Encouraging' Signs in Markets, Especially in Corn

September 3, 2016 06:00 AM
 
corn crop tour 2016

As the new marketing year—and harvest season—begins, Jerry Gulke sees a handful of “encouraging” signs, particularly in corn.

“The big news is in corn,” said Gulke, who serves as president of the Gulke Group in Chicago and farms Illinois. “We closed up near the highs of the day (on Friday) and closed up smartly on Thursday after taking a pretty big hit on the downside. … December corn closed higher for the week, which is pretty good.”

What’s driving the current price movement? Gulke pointed to several factors, including profit-taking by managed money as the month ends. Analysts and growers alike are also handicapping the upcoming USDA report on Monday, Sept. 12, when many expect USDA to adjust their yield expectations downward for corn.

“In Northern Illinois, where I’m at, there’s some variability (and) fields that have some disease in them,” Gulke said. “The corn always looks good around the outside edges, but once (you) walk in … you’ll see a good stalk and a good ear, and then all of a sudden, you’ll see two or three stalks that are blank and didn’t produce an ear.”

He said he’s hearing similar reports from other farmers, who are scouting their fields or cutting silage and are “very disappointed in their yields.”

“It’s a good corn crop, but not a record crop,” Gulke said. “Maybe there’s a chance that it could be significantly lower than what USDA predicted at 175.1 bushels.”

The situation is different for soybeans. This year’s bean crop “looks as consistent as you can get,” said Gulke. “I looked at mine yesterday, and I have to admit it looks like the best crop I’ve ever raised. The pods are full to the top, and I’ve got mud on my shoes after I walked through the beans, so we don’t have a moisture problem.”

It leads him to believe that soybeans might just match or beat USDA’s estimate after all.  “I think beans could surprise us,” said Gulke. 

Listen to his full comments here:

 

Back to news


Comments

 
Spell Check

Another Great Gulke Fairy Tale
DeKalb, IL
9/3/2016 01:02 PM
 

  Great Jerry, but what about all the '15 crop left you advised us to hold on to at 4.50 futures? Good thing I left your service

 
 
bulldawg
Greensburg, IN
9/3/2016 02:06 PM
 

  So the billion dollar question - are the lows in on corn? Even with a 170 type yield (5.1 bushel under USDA) we still are sitting on over 2 billion bushels. How much short-covering rally can one expect & better sell if it does? And if the beans are going to surprise us all - how much lower can we go? $8.50 with an additional 100 million net bushels to ending stocks (430 million) using a 51 bpa nationwide? And finally if beans are still headed lower...can corn rally simultaneously? These are the questions I like to see Mr. Gulke answer.

 
 
Gary bruns
MAQUOKETA, IA
9/6/2016 10:30 AM
 

  Been in a lot fields - Really doubt we will even see 170 average - My best guess (I could be a market analyst ;) - yields will be low 160's! 2016 will be very disappointing year for yields- fields are turning fast - disease - Storage will not be a problem - supply will NOT be there.

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close