December corn was down nearly 3¢ for the week ending Nov. 22, with January soybeans down around 21¢. Meanwhile, December wheat up about 12¢.
The grain markets are facing many more questions than answers. As a result, markets remain unsettled, says Jerry Gulke, president of the Gulke Group.
“This unsettled political atmosphere we have is affecting the markets,” Gulke says. “Just turn on the TV and we’re either trying to solve trade problems or impeach our President. That keeps a lot of uncertainty in the market.”
Gulke says these political issues are combined with volatility in the supply and demand fundamentals.
“We really don’t know what our demand is going to be from China,” he says. “And we're still questioning supply because we still have 20 million acres of corn left to harvest and about 3 million to 4 million acres of beans.”
From a fundamental standpoint, Gulke says, the U.S. has enough grain – even with all the problems farmers faced this year.
“We’ve probably seen the lowest soybean carryover we’re going to see,” he says. “And in corn, we are uncompetitive in the export market, and the market sees that. We have these underlying fundamentals that are haunting us.”
Gulke says the current grain market are one of the most difficult situations he’s seen for farmers. Listen in as he describes how he’s personally managing market risk.
Find more written and audio commentary from Gulke at AgWeb.com/Gulke
Jerry Gulke farms in Illinois and North Dakota. He is president of Gulke Group. Disclaimer: There is substantial risk of loss in trading futures or options, and each investor and trader must consider whether this is a suitable investment. There is no guarantee the advice we give will result in profitable trades. Past performance is not indicative of future results.
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