When it comes to February’s USDA reports, perhaps bearish expectations can be a good thing.
When the agency released numbers showing higher U.S. carryouts in corn, soybeans, and particularly wheat, “the reaction wasn’t as bad as it could have been,” said Jerry Gulke of the Gulke Group, speaking to Farm Journal Radio’s Pam Fretwell in a special report. “There had been a lot of media hype that (the report) was going to be negative, that there wasn’t any possibility of it being positive, so the traders were probably prepared for this.”
The biggest loser? Wheat, with a carryout of 966 million bushels. “That’s huge,” Gulke said. “That’s 200 million more bushels than we had two years ago.”
Listen to Gulke's full comments on the February USDA reports here: