Good news, harvest is over. Bad news, harvest is over.
As we start December on a mostly positive note for the week, Jerry Gulke, president of the Gulke Group, says it’s not a bad week for agriculture. The good news, he says, harvest is basically done, but the bad news is harvest is basically done, and now farmers have a big crop in the bin they have to get rid of.
Grains saw positive moves to end the week on Dec. 1, but bean oil took a hit with the EPA announcement on 2018 renewable fuels targets. “We already had what we had … and the EPA was not what a lot of us were looking for,” he says. With the renewable fuel targets staying basically static for next year, the news was met with mixed reviews and disappointment, especially for soybean oil (used in biodiesel).
While the EPA announcement was somewhat disappointing, the stock market is flying high—up 30% in the Dow Jones average the last 13 months. It was a wild ride in the stocks throughout the week reacting to political rhetoric and rumors in Washington regarding the tax bill. Of course, everyone will have to wait to see how that bill plays out or as Gulke explains, “We may see a buy the rumor and sell the fact result.”
The good news to all of this, Gulke says, is the economy—both U.S. and globally—is humming along and despite surplus Ag supplies the global demand might be able to handle it. Only time will tell.
Listen to Jerry Gulke’s full commentary on today’s Weekend Market Report.