This week saw a wild ride as Mother Nature continues to influence markets, especially in South America, says Jerry Gulke, president of the Gulke Group. Argentina seems to be having another year riddled with crop problems. In 2016, the country was dealing with flood conditions, this year they’re dealing with drought, which is impacting their soybean crops.
“The crop keeps being revised lower every week it seems,” Gulke says.
This, in turn, is impacting the soymeal prices as Argentina is a large exporter of meal, but without beans to crush that hurts their meal export potential.
“It’s good news for us,” Gulke says. “If we could plant more beans and less corn and get a problem in corn to get rid of that surplus, maybe things will come together and Mother Nature will bail us out again.”
It shows there’s always light at the end of the tunnel if you look far enough.
Listen to Jerry Gulke’s commentary this week on Weekend Market Report.