Gulke: Start Paying Even More Attention to The Weather

Gulke: Start Paying Even More Attention to The Weather

With lower production, yields, and acreage, the Jan. 12 USDA reports “should have been a bullish surprise” for corn, says Jerry Gulke, president of the Gulke Group in Chicago and a farmer in Illinois.

Yet the impact proved to be limited, for a variety of reasons. “These crop reports can be a watershed moment sometimes,” Gulke says. “My concern was we’d rallied so much since October—I was concerned if we could get news good enough to continue this rally.”

And, as Gulke feared, the reductions didn’t quite hit the mark, at least in terms of boosting corn prices. “Suddenly the market told us … ‘You cut acres. You cut yield.  And you still have 1.877 billion bushels. So tell me something new’,” Gulke suggests. “We can no longer kill the corn acres and yield. It is what is, and if there are any revisions, they’ll be small and nine months from now. “

Listen to Gulke's full analysis here on Farm Journal Radio:


The big numbers in soybeans made the week a bearish ones for beans. With a carryover of more than 400 million bushels, “we still have enough stocks in the bin to offset a weather problem in Brazil,” says Gulke.

It concerns him. “What the market is saying (pending a big weather event in South America) is we’ve got too much. Maybe we’ve got too much of everything. Too much corn. Too much beans,” Gulke says.  “Pretty soon we’re at the worst case where neither one makes us a lot of money, unless you had the grain sold in advance.”

With supply matching up with demand, Gulke says growers need to be prepared for price pressure. "We'll have just enough to go around. Nobody gets concerned as an end user except the producer--who may find he gets lower prices next year, barring any weather problem."

It makes Gulke want to watch Mother Nature—the only truly unpredictable factor--“like a hawk.” 

"It's going to be up to acres and weather,” he says. “Weather is sometimes more important than the Chinese.”  

What do you expect from the grain markets in January 2015 and beyond? Give your opinion on the AgWeb discussion boards.

Back to news


Spell Check

Greensburg, IN
1/17/2015 11:09 AM

  Funny how a 40 ct drop in price in corn is talked about like it was almost expected. But the bottom line no one knows what the market is capable of . If everyone waited for the January report like Jerry suggest $80 an acre disappeared from the bottom line. Now he says you have to wait on weather this spring & summer cause supply side is set and demand is not likely to changed substantially. The market gaves us an opportunity to turn a small profit. Now we are dependent on mother nature. That is not a guarantee either.

Sidney, NE
1/17/2015 07:15 PM

  There needs to be a better mechanism between FCIC, FSA and NASS records so we get the statistical analysis that's reliable. When NASS polls farmers, elevators, etc. there are many that BS their way through the surveys and you see what we end up with. Regardless, we end up with major dependence on exports for our farmstead price. Does anyone really think that an importing country hasn't protected themselves against a rising dollar by buying it on the open market? Maybe we just have too much transparency in our system to be readily undercut by our competition. Unfortunately, if you've missed the chance to sell 2014's crop or hedge 2015's crop, you'll need to wait for a weather scare for that opportunity now. The speculative funds will always be in control of the market. They've got the money--it's easy to lose money when it's not your own......


Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer