Will USDA Reopening Cause a Data Deluge?

January 25, 2019 04:42 PM
 
 

It was a somewhat sleepy week for markets with modest moves in corn and wheat, but soybeans rallied for the second week in a row, albeit a sparse 9¢ higher but a move in the right direction. Jerry Gulke, president of the Gulke Group, says Brazil’s continued weather concerns is working in our favor for now but with Argentina’s crop doing well South America’s situation could quickly change.

“It [Brazil’s potential crop yields] is going down, it’s going in the right direction,” Gulke says.

There is a global glut of soybeans right now but it’s not the only challenge the markets are facing. The question of how many U.S. soybeans China will buy and what they do with those beans remains up in the air. Despite these challenges and a plethora of unknowns right now, soybeans saw one of their highest closes in 2019 this week.

“There’s a lot of questions out there unanswered, but when you close into new highs for even this short year, it’s pretty significant,” he says. Now the market needs to sustain this new level.

Complicating this matter is the government shutdown. The past month, traders were relying on different outlets for market, trade and export information because USDA reports are delayed. As of Friday, Jan. 25, the president announced a deal that will reopen government agencies through Feb. 15. This will ensure furloughed workers will receive backpay, but will it also provide a backlog of USDA reports that shocks the marketplace? The first of which will be a "catch-up" report Feb. 8, coincidentally the last day of Gulke Group's annual outlook conference in Palm Springs, Calif.

“The charts are going to be interesting next week because of the events of this week,” Gulke says.

Listen to Jerry Gulke’s full commentary on this week’s Weekend Market Report.

 

Read Jerry’s most resent Technically Speaking column, Information Overload—Not!

Read and listen to all of Jerry’s commentary by visiting AgWeb.com/Gulke.  

Back to news


Comments

 
Spell Check

John
Greenville, OH
1/26/2019 05:15 PM
 

  Amen Keith. I now have list all respect for Jerry.

 
 
keith
Augusta, ME
1/26/2019 09:37 AM
 

  I'm very disappointed in your heartless comment about government employees Jerry! How dare you presume to know about peoples individual situation and yet pass a general judgment about all of them! Do you realize how many farmers whine and cry poverty in the comment sections of these web articles! It goes completely contrary to how great and self-sufficient and self-reliant farmers are SUPPOSED to be!

 
 
John
All over, VT
1/26/2019 06:14 PM
 

  Did anyone ever stop to think the economy isn't booming like we're told ? Most of these people who are desperate for their checks were behind before the shutdown! These & many more people are well over spent and living way above their means. Everyone seems to have built new houses and all driving 70k+ vehicles, I promise something will give in the near future.

 
 

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