Gulke: USDA Kicks the Can Down the Road at Ag Forum

February 23, 2018 08:57 PM

The U.S. Department of Agriculture’s (USDA) Ag Outlook Forum concluded Friday and Jerry Gulke, president of the Gulke Group was listening online with the hope for new guidance or more soybean acres; however, that didn’t happen. Surprisingly, the government kept corn and soybean acres about the same as last year.

It seems USDA kicked the can down the road by keeping the acres the same, perhaps to see what happens on the March 29 Prospective Plantings report, Gulke says. They did lower the expected yield in corn and soybeans, though.

“Given all that,” he says, “the supply and demand didn’t change much.”  

 Barring a shock by Mother Nature, we could be seeing a range-bound market in the year to come.

Listen to Jerry Gulke’s complete commentary on the Ag Outlook Forum, South America’s weather, and what the March 29 planting intentions could mean to the market.

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Spell Check

Greensburg, IN
2/24/2018 11:49 AM

  The man’s most correct statement it all comes down to weather in the U.S. Argentina is hurt but they also are carry in 35mmt of old crop. That’s 15 mmt more than any other previous year. That’s a huge buffer. Argentina’s losses would normally be significant. So to expect a huge shift in price from the .95 ct rally we just saw is not likely in the cards. So U.S. acres and yield will swing the pendulum one way or the other...

Monsey, NY
2/24/2018 06:12 PM

  Corn has been beaten up! Supply-demand is not who is hungry bids corn higher.. Its weather very scared golf playing multi millionaires are scared of the dangerous stock sell off. And thus move cash that's been on the sidelines for years, and also re-allocate from stocks into better value like corn. Bidding up the prices higher...