When Jerry Gulke looks at the December markets, he sees plenty of unpredictability—and signs of hope.
“I think we’ve got lots of volatility ahead of us until the January stocks report,” said Gulke, speaking on Farm Journal Radio’s Weekend Market Report. But he also sees some bright spots amidst the ups and downs of the holiday markets, like recent weekly key reversals in corn and soybeans that resulted in important gains.
“If (you) go by strictly by fundamentals, you need to learn the technicals too,” said Gulke, president of the Gulke Group in Chicago. “Technically, things are looking better.”
He looks at other factors in the market too, including those who are looking at short-term and long-term trends and not just reacting to the latest headlines. “The smart money puts their money where their thinking is, and you see that on the high, low, and last (prices) on corn, soybeans, and wheat on a daily, weekly and monthly basis,” Gulke said. “That’s what you really need to watch. Not so much what they’re saying on TV, but what they’re doing.”
And what is the Gulke Group doing? “We bought back all our hedges recently,” Gulke said. “We are basically unhedged on old-crop ’15 and new crop 2016.”
Listen to Gulke’s full comments on the dollar, Argentina, the livestock market, Stats Canada’s latest crop production numbers and more.