Markets - General
Gulke expects USDA to drop the national average corn yield to 172.5 per acre and leave the soybean yield unchanged. The key, he says, will be what USDA does with its demand estimates.
The grain markets had another volatile week, highlighted by USDA’s Grain Stocks report. Jerry Gulke provides his take on the markets moving forward.
With soybean harvest past the halfway point and corn harvest nearing it, you likely have a better idea of how many bushels you won’t be able to store on farm. What should you do with those extra bushels?
After several weeks of volatility, the grain markets were relatively quiet this week — as harvest charges forward. Could this be a positive sign for prices? Jerry Gulke provides his take.
With U.S. soybean harvest at 88% complete, Jerry Gulke, president of the Gulke Group, says the market is sizing up the crop and buyers are trying to lock in their needs.
The latest USDA report, mid-term elections and a collapsing U.S. dollar all impacted the grain markets this week. Jerry Gulke shares his take on what this means going forward.
From growing tensions between Ukraine and Russia to forecasts for hot and dry weather across the Midwest, grain prices have been on a volatile run. Analysts think the volatility could heat up again next week.
December corn ended 22½ cents higher; November soybeans were up 31 cents; with Chicago wheat climbing 36 cents; Kansas City, 31 cents; and Minneapolis, 2 cents. How long with the volatility continue?
Thanksgiving normally marks a change in direction for the grain markets. Jerry Gulke sets the stage for this year’s potential moves.
With corn harvest complete, is your grain sitting unsold in the bin or have you sold it?
On the first trading day of 2022, corn and wheat prices were down. But soybean prices were higher this year. This year all three commodities took a hit on the first trading day.
I believe the top lesson from the 2022 crop year is farmers need to put aside the market hype and look to sell grain on rallies, or at least protect high prices with put options.
The Fed being hellbent on fighting inflation will temper grain commodity prices in the year ahead.
Be careful to match cost exposures to revenue opportunities and not squeeze margins when one moves the wrong way. Remember: Things change quickly, so remain flexible.
For 2023, key market factors are the same as 2022 — China demand and South American production.
Questionable corn demand and expected production highs in South America bring major questions to the corn and soybean outlooks. Yet positive factors are evident.
“Human nature is to do nothing, but that means you can end up with three years of corn on your farm,” says Ben Brown, agricultural economist at the University of Missouri. “This strategy makes you proactive.”
The grain markets this week had trading ranges typical of a daily range a few months past. They appear to be calming down ahead of USDA’s February reports and USDA’s Ag Outlook Forum, says Jerry Gulke.
“There’s a place that you put on risk and there’s a place that you take it off. So, we decided to take some money off and put in the bank,” says Jerry Gulke, president of Gulke Group.
“What I look for as an agent and as a farmer is if I can get close to 2.5 times or more return on coverage versus extra premium,” says Jamie Wasemiller with Gulke Group and Wasemiller Insurance Agency.
Rate increases can put a squeeze on farm profitability. Have you factored in how these cost-of-money increases affect your storage costs?
The situation in the grain markets this spring looks much different than a year ago, says Jerry Gulke, president of Gulke Group. Unfortunately, the picture is not as price positive for the 2023 crops.
With the popularity of electric and hybrid vehicles growing, long-term gasoline use could drop, taking ethanol consumption with it. Will ethanol continue to be the juggernaut in the corn market?
The grain markets are focused on planting progress — or the lack thereof. Jerry Gulke says the markets are building in weather premium as progress could see delays periodically especially in northern areas.
The July Ag Economists’ Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.
Sometimes it isn’t a matter of what direction prices are headed but where they are not headed. USDA has shaved demand, especially in corn. The long-term outlook might show corn prices have lower targets yet to come.
The major debate this year has been one of perceived tight stocks versus how high prices have or will impact global demand for U.S. agricultural commodities.
The 2022/23 crop season could post two records in Brazil: a record 313 million tons of soybeans, corn, cotton, rice and wheat and a record storage deficit of more than 100 million tons.
Iowa farmer Ben Riensche is excited about the opportunities current margins are providing to reinvest in his operation. He provides these tips for spending money during good times.
Markets can tell a story, especially after a journey through headwinds, political strife and wars. March soybeans did that in 2022.