Gulke: Markets Continue to Rise Despite Anticipated 'Market Pressure'

October 29, 2016 05:41 AM

Will harvest pressure be a no-show again this season?

As farmers near the homestretch of harvest, the anticipated corresponding market price pressure is nowhere to be found this year, other than basis widening.   Despite corn and soybeans closing lower on Friday, they still closed higher on the week, and that’s pretty good going into so-called harvest pressure, says Jerry Gulke, president of the Gulke Group.

Wheat was the only grain to move lower. Even cattle made positive movement to end the week up despite being down on the day.

Now, the “$64,000 question,” Gulke says, is what will farmers do with the remaining 10% of harvest? Will they sell it or store it? How are elevators and traders preparing for what might amount to overflowing bins and piles of grain?

Listen to Jerry Gulke’s full commentary:

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Spell Check

Lakeville, IN
10/31/2016 04:53 PM

  Our dollar is at 98 something, they want to raise interest rates.... we have this HUGE corn crop, and Barbado's just bought a 100,000 tons of corn from us, what does this mean??

Iowa city , IA
10/29/2016 08:57 AM

  I wonder if this crop is a big as all these so called experts think? Of course everyone has some huge yielding fields, and every farmer loves to brag about them and so do these analysts. But no farmer will talk About the field that was poor. How many poor fields are out there? What happens when the US runs out of beans and all China has is SA to buy from. Looks like they have the potential to $12 beans.

Greensburg, IN
10/31/2016 08:43 AM

  Yes there are a lot of moving parts, and to be honest it is nearly impossible to make accurate prediction on any given price. I don't think we will run out of beans anytime soon. We all know we got the biggest bean crop ever, and we expect demand will use a good portion, but with China being the elephant in the room, and presidential candidate that brags on how he is going to go toe to toe with China on trade issues and the manipulation of the yuan...I am not sure I want to sit back and wait to see how this year's price discovery unfolds. However, I might be better served to take this recent $1 rally along with those 10 extra bushel and be content. If you want to be long then take 50 ct and go buy a call. We have to remember our cost per acre has dropped significantly thus I just made another $100 per acre and $150 per acre more than I cleared last year. Some time is okay to cash in...It's about revenue per acres not price per bushel.