Gulke: Soybean Market Shrugs Off Negative USDA Report

September 16, 2017 04:00 AM
 
 

The soybean market opted to shrug off Tuesday’s negative USDA report, opening the door for soybean prices to rally off of their recent lows, says Jerry Gulke, president of the Gulke Group.

“We had a good week in the soybeans, and today [Friday, Sept. 15] was a day when we dropped back 7 cents, but you could expect that since we were up 15 cents the day before and up good the day before that,” Gulke tells “Weekend Market Report” guest host Jo Windmann in an interview airing Saturday, Sept. 16, 2017. “Quite a recovery. I guess I would look at those lows around $9 that we posted in August. A lot of people thought those were the pre-harvest lows and maybe the low for this marketing year—that’s a little bit of a stretch, perhaps, depending on the South American crop. But we are  around $9.68.

If the market had closed over $9.78, it would have represented a weekly key reversal higher, Gulke points out.

“Where it is now, we had a reversal in grain prices to close higher in soybeans on a report that had negative connotations. In other words, it wasn’t so much what they said as what they didn’t say,” Gulke says. “They didn’t lower the yield, yet there’s so many people out there yet that still don’t believe that crop is that good in soybeans or corn, for that matter. That may be part of it. The market’s sometimes a self-fulfilling prophecy. If they don’t want to sell more, then the least path of resistance is higher. We’re not into harvest yet, we’re just beginning, and that will expand more.”

Meanwhile, the good news on the soybean front “helped corn maintain itself,” he adds.

Back to news


AgTech Expo

Harness the power of AgTech

Farm Journal's AgTech Expo
Dec. 11 to 13 in Indianapolis, IN

Keynotes from: Google's Geospacial Technologist, Farm Journal Field Agronomist Ken Ferrie, and an expert in the Internet of Things. Plus 19 breakouts presented by independent industry experts. To learn more, click here.


 

Comments

 
Spell Check

stanton
oblong, IL
9/18/2017 12:01 PM
 

  Ole Jerry is a typical farmer.....always optimistic, skeptical of the only truly unbiased crop reporting: the USDA!

 
 

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 Barchart.com
Brought to you by Beyer
Close