August 27, 2020
On Wednesday, the USDA released its Outlook for U.S. Agricultural Trade, a quarterly report from the Department’s Foreign Agricultural Service (FAS) and Economic Research Service (ERS). Today’s update includes highlights from the report, which was coordinated by Bart Kenner and Hui Jiang. The Outlook stated that, “U.S. agricultural exports in Fiscal Year (FY) 2021 are projected at $140.5 billion, up $5.5 […]
August 27, 2020
Wall Street Journal writers Bob Davis and Lingling Wei reported this week that, “Senior U.S. and Chinese officials said they were committed to carrying out the phase-one trade accord between the two nations, the two governments said, after the two sides discussed the pact Monday evening U.S. time. “The videoconference brought together U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and […]
August 25, 2020
Crop tour estimates and derecho damage brought USDA corn production forecasts for the 2020 crop under question over the last week. While a lower domestic supply of corn supports corn prices, USDA projections of corn consumption in 2020-21 under current economic conditions seem in the high end of the possibility set. Corn exports showed strength […]
August 25, 2020
Wall Street Journal writer Kirk Maltais reported on Saturday that, “Following a growing season last year filled with battering rainfall and bitter trade wars, U.S. farmers hoped 2020 would provide them an opportunity to make up some ground. Instead, the situation has grown worse for many as prices remain depressed. “Despite a wind storm tearing through Midwestern farms last week and drought conditions in isolated […]
August 21, 2020
The Creighton University Rural Mainstreet Index (RMI) increased slightly to a weak level from July’s frail reading. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, August’s index represented the sixth straight month with a reading in a recessionary economic zone. Overall: The overall index […]
August 20, 2020
Bloomberg News reported this week that, “President Donald Trump said he called off last weekend’s trade talks with China, raising questions about the future of a deal that is now the most stable point in an increasingly tense relationship. ‘I canceled talks with China,’ Trump said Tuesday in Yuma, Arizona. ‘I don’t want to talk to […]
August 19, 2020
Farming is a capital intensive venture with specialized equipment needed for various field operations, including several different implements used for tillage. Machinery ownership and labor can be costly. Two methods for managing tillage costs are to 1) reduce tillage passes and 2) outsource tillage operations. Background Recently released crop budgets (farmdoc daily, August 4, 2020) project losses […]
August 18, 2020
The highly anticipated August Crop Production report presented a record yield for soybeans this year. Despite the forecast of higher production, soybean futures went into the weekend up over 30 cents for the week. Strong Chinese demand and skepticism surrounding production levels supported this rally. The soybean crop forecast of 4.425 billion bushels is 873 […]
August 12, 2020
Wall Street Journal writer Jesse Newman reported last week that, “More U.S. farmers are filing for bankruptcy, as federal payments projected to reach record levels this year fall short of compensating for the coronavirus pandemic and a yearslong slump in the agricultural economy. “About 580 farmers filed for chapter 12 bankruptcy protection in the 12-month period ended June 30, according […]
August 11, 2020
The December futures price of corn settled in a range of $3.20 – $3.25 over the last few trading sessions. Questions regarding a price bottom for corn bubbled up in market discussions. A yield-enhancing weather outlook and flattening ethanol production offset large export sales last week. A change in the recent corn price pattern involves […]
