Gulke: Here's What Could Stop the Drought Rally

July 22, 2017 05:02 AM

The current heat wave that’s descended on key grain production areas in the Great Plains and Midwest may not be over yet – but is the related ‘drought rally’ about to wrap up? Jerry Gulke, president of the Gulke Group, thinks that’s certainly a possibility.

“Market psychology is just as important sometimes as the weather itself,” he says.

The weather forecast for the next ten days does appear to be more forgiving with less extreme heat, Gulke adds. If that is indeed the case, that gets many places past pollination and marching onward toward harvest, he says.

Furthermore, it’ll take “some big states to have a problem” to counteract the boost in U.S. supplies reported in the June 30 USDA stocks report, plus a larger-than-expected South American crop now being reported, Gulke says. USDA tallied corn stocks about 230 million bushels more than the average pre-report guesses.

What are some key events farmers should watch for next? Gulke shares his thoughts with Farm Journal Radio’s Pam Fretwell.

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Spell Check

Osterdock , IA
7/22/2017 08:38 AM

  What could possibly go wrong...BWAHAHA...THE USDA will pull another 10 million bushels out their as...

JD Guy
stewart, MN
7/22/2017 08:59 PM

  I noticed how Jerry left out Indiana, KS and said nothing about the heat and how high the night time temps have been. So what if you have some moisture during pollination when it's this hot it's not good for the corn. What happens when it's hot and dry in Aug when kernel fill is taking place? Apparently the crop doesn't need moisture then. One good rain and were set right? What a stupid comment. By the way Jerry who's really making the market? Who are the one's trading hundred's of thousands of contracts everyday? It couldn't possibly be the funds could it? It certainly isn't the farmer. Its time to drain the swamp on the USDA and their BS reports that they put out to manipulate the market.

Rushville, IN
7/24/2017 06:56 AM

  Funds !


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