For the week December and March corn were down 6 cents, November soybeans fell 20 ¾, January soybeans lost 20 ½, December soybean meal was down $4.60, December bean oil fell 155 points, December soft red winter wheat was 1 lower, December hard red winter wheat lost 7 ½, December hard red spring wheat was off 4.
Soybeans Selloff on China Disappointment
November soybeans were down nearly $.21 for the week and fell $.12 on Friday after President Trump posted that he and President Xi will meet at a summit in South Korea next month and he will travel to China early next year.
Jerry Gulke, president of the Gulke Group, says the market was disappointed there was no mention of soybeans as part of those talks which triggered a selloff.
“But as we figured there was a big deal about nothing and so if there are any ag purchases at all that will come in January,” he says.
Repeat of Phase I?
Even then Gulke says if the details are anything like the Phase I trade accord with China it may not amount to much if it includes the same “commercial considerations” clause regarding Chinese purchases of ag goods.
“It said yes, we’ll buy beans, we’ll buy agriculture products from you if we need them, if the price is right, and we’re not going to throw our newfound friends under the bus, which means Brazil and Argentina perhaps and others, where they’ve invested tons of money in infrastructure,” he explains.
The end result, according to Gulke, was China bought less soybeans from the U.S. than promised and they bought less corn as well.
Soybeans Break Down Technically
Gulke says technically the soybean market was already sending warning signals of a possible selloff on Thursday.
“Thursday, we got a signal that says something is up and maybe the party’s over. And so, we sold beans, we’re 100% sold in beans. This time I bought November put options at the money, which has been very unbecoming to me over the last 30 years. I don’t like them, but sometimes they’re worth it and they were cheap,” he explains.
Gulke was also nervous about being short futures ahead of the call between President Trump and Chinese President Xi because of the uncertainty of the outcome.
Soybean Storage Strategy
Without China in the export market farmers may be tempted to sell soybeans off the combine and look at purchasing options for a re-ownership strategy.
However, Gulke says if farmers have on-farm storage they should consider storing soybeans for several reasons.
- Commercial storage costs have skyrocketed
- On-farm storage will allow farmers to improve soybean moisture levels and avoid dockage.
- On-farm storage will buy time to allow soybean basis to narrow.
- On-farm storage will allow farmers to take advantage of the carry in the soybean futures.
Gulke says he is storing soybeans on his farm for the first time in 15 years.
“We pulled out the grain auger to put soybeans into a bin if not just for the carry but also to pick up a few points of moisture and avoid discounts from the elevator,” he explains.
With the dry finish to the soybean crop, he says farmers selling beans may get docked for each half to 1% soybean moisture levels fall below 15%.
“So putting that grain in a bin, and if you put it in properly and take it back out, it’ll blend itself out right now it looks like you’ll make 60 to 70 cents a bushel,” he says.
2026 Soybean Sales?
This week Gulke says they also made their first sale for November 2026 soybeans.
“And if you look at the balance sheets or the profit and loss sheets. - I’m not so sure as I’m going to plant any corn and that’s true with a lot of people because it doesn’t pencil real well. So, there will be a lot of beans,” he adds.
For more information on marketing strategies contract Jerry at info@gulkegroup.com.
