October 28, 2019
Bloomberg writers Michael Hirtzer and Tatiana Freitas reported last week that, “China is clearing the way for more purchases of American soybeans in an apparent boon for U.S. farmers. There’s just one thing getting in the way — cheap Brazilian supplies. “As Beijing and Washington edge closer to an initial trade resolution, the Asian nation is said to have granted tariff waivers on […]
October 25, 2019
The Creighton University Rural Mainstreet Index (RMI) for October climbed above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The overall index rose to 51.4 from 50.1 in September. Although still weak, this is the highest reading since June of this […]
October 24, 2019
In an update last week from the Federal Reserve Bank of Kansas City (“Farm Lending Slows but Remains High“) Cortney Cowley and Ty Kreitman stated that, “Growth in farm lending activity slowed in the third quarter of 2019;” but, “Despite a slowdown in the pace of debt accumulation, weaknesses in the sector persisted, continuing to pressure farm cash flows and agricultural credit […]
October 23, 2019
Crop revenue changes from 2018 to 2019 will vary across Midwest states for both corn and soybeans. State in the eastern corn-belt — Illinois, Indiana, and Ohio — likely will have revenue declines because of yield decreases. Western corn-belt states are not projected to have large yield declines. Possibly, price increases could offset yield decreases […]
October 22, 2019
Reuters writer Dominique Patton reported last week that, “China is still a long way from forking out $50 billion for farm goods from the United States, agriculture industry analysts said on [Oct. 14th], cautioning that getting there is contingent on removing substantial technical and political hurdles.” The Reuters article noted that, “But Darin Friedrichs, senior Asia commodity analyst at […]
October 22, 2019
Central Illinois corn prices climbed to the mid-$3.80 range last week with some locations offering above $4 for fall delivery. While December futures prices struggle to break through $4, the potential for a smaller crop holds the promise of a price rally despite weak demand. A strong rally depends on the ability of supply issues […]
October 21, 2019
On Wednesday, the Federal Reserve Board released its October 2019 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy. Graph of Fed Districts from, “The Beige Book.” * Sixth District- Atlanta– “Agricultural conditions remained mixed. Reports indicated much of the District was […]
October 8, 2019
Bloomberg News reported last week that, “Chinese companies bought U.S. soybeans after the Xi Jinping administration issued more waivers from its retaliatory import tariffs, according to people familiar with the situation. “Both state-owned and privately run firms purchased between 12 and 15 cargoes, or as much as 1 million metric tons, said the people, who asked […]
October 2, 2019
The Ag Economy Barometer dipped slightly in September to a reading of 121, down just 3 points from August, when the index stood at 124. Although the barometer’s decline was small, there was a relatively large sentiment shift among ag producers as they were noticeably more pessimistic about current conditions on their farms and in the U.S. […]
October 2, 2019
This article discusses four key elements to consider when choosing between Agricultural Risk Coverage at the County Level (ARC-CO) and Price Loss Coverage (PLC): 1) expected payments, 2) type of coverage, 3) payment limits, and 4) SCO availability. A detailed description of ARC-CO is available in a September 17th farmdoc daily article and PLC in a September […]
