Markets - General
As pork producers’ potential profits continue to erode this year, some economists say 2023 could be financially worse than 1998, which is unearthing concerns about contraction, restructuring and vertical integration.
Jerry Gulke says the Middle East conflict bears watching and advises farmers to have their energy and fertilizer supplies in hand should the event turn into another war.
The Ag Economists’ Monthly Monitor show economists expect USDA to make additional cuts to its yield estimates, but one economist thinks weather worries in South America could be an even bigger story than U.S. yields.
Should farmers store and try to capture the carry and more importantly will that carry be there in the future when it’s time for them to deliver? Jerry Gulke, president of the Gulke Group, is skeptical.
Jerry Gulke, president of the Gulke Group, says the most significant part of the report was the breakdown of who is holding the grain.
As Congress drew closer to a government shutdown, the news pressured commodity prices. The drop in commodity prices happened despite what some viewed as a fairly bullish September Grains Stocks report for corn.
If Congress doesn’t pass stopgap funding, crop production and progress reports will probably stall. That won’t bode well for markets. “Usually it means that we’ve got some selling pressure ahead,” says one analyst.
![Ag Economists Monthly Monitor - Ag Economy Outlook - Main Article Image - 09-2023 - WEB[34].jpg](https://assets.farmjournal.com/dims4/default/dcdb1c6/2147483647/strip/true/crop/3500x2338+0+81/resize/250x167!/format/webp/quality/90/?url=https%3A%2F%2Ffj-corp-pub.s3.us-east-2.amazonaws.com%2Fs3fs-public%2F2023-09%2FAg%20Economists%20Monthly%20Monitor%20-%20Ag%20Economy%20Outlook%20-%20Main%20Article%20Image%20-%2009-2023%20-%20WEB%5B34%5D.jpg)
Ag economists’ view on the ag economy is starting to erode. The September Ag Economists’ Monthly Monitor shows lower commodity prices, concerns about demand and a negative outlook for China’s economy.
The corn market is turning stronger, says Jerry Gulke, while wheat was the first to reset and proceed like everything is normal, even though that’s not the case. When it comes to soybeans, there’s bad news and good news.
On the heels of the September WASDE report, Jerry Gulke details 9 points to help you understand and navigate the troubled waters ahead.