Gulke: Monitor Weather Closely For Next Six Weeks

July 14, 2017 04:00 PM
 
Corn drying up

Hot and dry conditions are prevalent across the western half of the U.S., and those conditions appear to be moving eastward, says Jerry Gulke, president of the Gulke Group. That could spell trouble for key corn- and soybean-growing regions, even though the market hasn’t fully recognized the threat.

The weather is yet another factor that could spur volatility on the heels of USDA’s July 12 supply-and-demand report, which took the top off of the recent corn rally

“It ain’t over ‘til it’s over,” says Gulke, quoting Yogi Berra, in a “Weekend Market Report” radio interview airing Saturday, July 14, 2017, on AgWeb.com. He points out recent comments from Drew Lerner, founder of World Weather, who has warned of a possible “Sleeping Dog” drought.

“Last year, he was very conservative,” Gulke says. “He didn’t believe all this [talk of] hot, dry weather and $6.50 corn. He just said flat out I don’t think it’s going to happen. … And he was correct. Well, this year, he’s leaning toward the side of a lot of other people, names that I have respect for.”

The true test will be how yields start to stack up in August.

“We’ll probably find out that we’re not even close to the record yield. The market hasn’t necessarily woken up to that because they’ve been fooled before.”

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Comments

 
Spell Check

Jim
Coon Rapids, IA
7/14/2017 06:11 PM
 

  Why is it the july report always such a shocker? I'm in western Iowa, had 2 inches total for june, 1 tenth of an inch so far in july with nothing in the forecast but hot and dry. Corn is pollinating so can only hope for the best. Good luck everyone and let it rain.DA

 
 
Joe
Anywhere , TX
7/17/2017 08:18 AM
 

  Hey there Randy, we are now shelling 160 bu corn as we speak and getting $4 ! Oh yea, we paid 245.00 for NH3 too ! Why are you trying to raise corn in the mid-west ?? WTF !

 
 
clown
disneyland, UM
7/15/2017 11:30 AM
 

  Hi Jim, I don't think the report was a shocker, just that "hot money" (funds) were leaning the wrong way after a good rally & needed additional fuel to keep it going. The report wasn't bullish or bearish IMHO so elevated prices had nothing to support themselves at those levels. Praying you get more rain.

 
 

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