Markets - General
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.