Volatility Equals Opportunity for Corn and Soybean Marketing

Jerry Gulke says that volatility is not an enemy for farmers but rather an opportunity to maximize their gross income. He believes that treating price fluctuations as a challenge can lead to missed opportunities and financial losses.

Gulke notes that the market doesn't care about individual costs of production, but rather relative value and supply and demand fundamentals. If yields are below 180 bu/ac nationally for corn, carryout will be around 500 million bushels tighter than this past marketing year, indicating a need for price rationing to curb demand.

The expert points out that the market has seen significant August price events in the past, including 2006, 2010, 2014, 2020, and 2024. These events often precede fundamental changes in the market, leading to a 'paradigm shift' in how farmers compete globally.