Markets - General
The Russia-Ukraine conflict threatens to upend world trade.
Welcome to a tale too insane for fiction: a cottonmouth farmer seeking a snake venom crop for harvest.
Tensions between Russia and the West are escalating as Russian President Vladimir Putin warned that Moscow would strike new targets if the U.S. supplied long-range missiles to Ukraine, according to Russian state media.
Farmers in North Dakota are busy planting this weekend. But with water still standing in fields, there’s the possibility of 1 million acres in prevent plant. Tommy Grisafi and Brian Splitt break down the markets.
Feed costs are seeing volatile swings, even as hog prices trend higher. While the markets produce major whiplash for producers, margins on the farm show costs are increasing faster than returns.
What are the most popular crops and livestock produced across the globe? Let’s take a journey around the world of agriculture.
U.S. corn planted acres doubled last week, going from 22% planted on May 8 to 49% as of May 15, according to USDA. Yet, that is still way below the five-year average of 67%.
Surprising Cut to Corn Yields and North Dakota’s Planting Nightmare Show Crop Supplies are Shrinking
Despite USDA releasing a forecast for a record soybean crop for a second year in a row on Thursday, soybean prices skyrocketed Friday. USDA trimmed the national average corn yield, yet corn prices closed lower Friday.
The week started out in a downward trend but ended on a high note due to continued planting delays and lower USDA crop projections.
USDA made a historic move with its May 12 World Agricultural Supply and Demand Estimates report, by dropping the national corn yield below trendline.
U.S. corn planting progress is off to its slowest start since 2013. With only 14% of the corn crop in the field as of May 1, Dan Basse of AgResource Company thinks a record U.S. corn yield is already off the table.
A bullish set of fundamentals pushed corn prices to this high level, says Dan Basse, president of AgResource Company, and those factors could actually be getting more bullish.
The fundamentals were already in place, forecasting positive prices for grain. The war in the Ukraine has strengthened that prediction.
Cooler than average temperatures, combined with rain and snow, have pushed many Midwest farmers’ plans to plant back a few more weeks. The slow planting pace is impacting commodity prices, and it’s not even May.
A rising tide lifts all boats, and that might be what’s happening in the grain and oilseed markets. This week kicked off with another big rally in prices.
Chicago Board of Trade (CBOT) corn futures topped $8 a bushel and reached their highest price in nearly a decade on Monday on concerns over unfavorable U.S. crop weather and the Ukraine war disrupting grain exports.
It was the “big swap” many didn’t expect. What makes it believable is total corn and soybean acreage intentions of 180.5 million is nearly unchanged from 2021.
USDA’s first Crop Progress Report of the year showed only 27% of the nation’s winter wheat crop is rated “good,” far below the trade’s expectations. The numbers show the battle against drought is brutal in winter wheat.
China came in with a major buy to start the week. USDA confirmed in its daily export sales report that Beijing purchased 1.084 million tonnes of U.S. corn marking the biggest buy since May of 2021.
For 2022, USDA are expecting more soybean acres than corn. That’s according to the 2022 Prospective Plantings report released on March 31.
The commodity markets came under pressure to start the week as traders tried to shed risk over shipping concerns in China as COVID-19 concerns caused officials to shut down transportation amid a two-pronged lockdown.
Less than a week from USDA’s Prospective Plantings report, it seems the market isn’t consumed by possible acreage outcomes. Instead, outside interest fueled prices as investors see commodities as a safe bet.
Volatility is here to stay in the grain markets — but so could higher prices.
In the March World Agricultural Supply and Demand Estimates (WASDE) report, USDA made a deeper cut than expected to global soybean production.
The global soybean crop keeps shrinking, led by a massive decrease in South America.
USDA’s 2022 supply and demand forecast came out just hours after Russia declared war on Ukraine. And as the crisis continues, USDA Chief Economist acknowledges the situation is impacting world trade and crop prices.
The Russia-Ukraine crisis sent wheat prices skyrocketing 50 cents higher, with corn up 30 cents at one point Thursday. Crude oil also soared above $100 per barrel, hitting the highest level since 2014.
Combined corn and soybean area is forecast at 180 million acres, below the historical high of 180.6 million planted in 2021.
Brazil slashed its soybean forecast this week, while China’s hunger for U.S. soybeans seems to be growing. And it led to soybean prices continuing to surge higher this week.
Dry conditions in South America continue to damage crop potential.