Gulke to Farmers: Be Ready as Weather Roils Markets

July 16, 2016 06:00 AM
 
Gulke to Farmers: Be Ready as Weather Roils Markets

Between USDA’s good crop rating reports and summer weather as a wild card in the markets, producers may be getting anxious. But they can use strategies to offset market volatility, according to Jerry Gulke of the Gulke Group in Chicago.

“As soon as the ink was dry on that crop report of the USDA, the market turned to weather again because that is really going to be the determining factor,” Gulke told Pam Fretwell of Farm Journal Radio. “It does this every year. You make or break your crop in July or August on corn and beans."

But there are strategies  producers can use, including futures, options, puts, and cash sales, he explained.

“We made some pretty good cash sales at 35%  to 45% of our cash sales, when beans were $11.80 and corn was $4.54 so we can wait it out. Thirty-five percent to 40% of the cash market is about all I want to risk,” Gulke said.

Listen to his full comments here:

 

Back to news


 

RELATED CONTENT

Comments

 
Spell Check

John S
Fargo, ND
7/16/2016 07:01 AM
 

  He sure does cherry pick those market tops doesn't he? Below is a link to his commentary ( just before 8 minute mark) on the March 31 report when he said his clients were 100% sold in old crop and new crop (markets were around ~$3.70 at the time). Good stuff! http://www.agweb.com/mobile/article/usda-delivers-big-shock-in-corn-wheat-acres-naa-alison-rice/

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

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!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close