Wall Street Journal writers Ryan Dezember and Kirk Maltais reported last week that, “Dry weather, China’s push to fatten its pigs and the lockdown-induced baking bonanza are lifting prices for U.S. row crops. “Futures prices for soybeans, corn and hard red winter wheat—the kind used for baking bread—have risen by about a third since a rally began Aug. 10. Soft red winter wheat, found in animal […]
Late last week, Reuters writers Hallie Gu, Maximilian Heath, and Naveen Thukral reported that, “Chinese feed producers, pig farmers and traders are reshaping the global grain market as they scour the world for supplies amid a domestic shortfall that sent local corn prices to record highs and is expected to fuel global food inflation in 2021. “The country’s buying has put it on a trajectory to emerge as the top […]
A news release this week from the American Bankers Association (ABA) stated that, “As the farm economy continues to work through a prolonged downturn in the midst of an unparalleled, global economic dislocation, ag lenders remain focused on credit quality, according to the Fall 2020 Agricultural Lender Survey report produced jointly by the [ABA] and the Federal Agricultural Mortgage Corporation, more commonly […]
Last week, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the third quarter of 2020. Federal Reserve Bank of Chicago David Oppedahl, a Senior Business Economist at the Chicago Fed, explained in The AgLetter that, “The District observed a year-over-year increase of 2 percent in its agricultural land values […]
China’s corn imports have been a topic of intense speculation since the mid-1990s. China is forecast to import a historical high of 512 million bushels during the 2020 crop year, prompting the question: “Will China become a consistent, growing importer of corn?” Perspective on this question is provided by examining trends in China’s corn sector […]
Last week, the U.S. Department of Agriculture (USDA) released its baseline projections providing ten-year estimates of supply and demand factors impacting U.S. agriculture. These projections suggest long-run prices of $3.55 per bushel for corn, $9.80 per bushel for soybeans, and $5.10 per bushel for wheat. While these prices are reasonable for long-run budgeting exercises, we […]
A report earlier this month from USDA’s Foreign Agricultural Service (FAS), “China’s Corn Imports Estimated to Hit 22 Million Metric Tons,” stated that, “The forecast for China’s corn imports for MY 2020/2021 is increased from 7 MMT to 22 MMT. The jump is attributed to depleted stocks to meet current demand. Continually rising domestic corn prices will […]
As feed prices rise, calf prices tend to trend lower, according to Karl Hoppe, the North Dakota State University Extension livestock systems specialist based at NDSU’s Carrington Research Extension Center. Feed prices have risen since last summer. For example, corn prices have increased $1 per bushel in some North Dakota markets. Backgrounding cattle is a […]
Farmer sentiment hit a new record high in October as the Purdue University-CME Group Ag Economy Barometer climbed to a reading of 183, a 27-point increase compared to September. The reading easily eclipsed the previous record high set back in February, before the pandemic’s onset. Both of the barometer’s sub-indices also set new record highs in October. […]
Late last week, Bloomberg News reported that, “China is flying in record numbers of pigs to improve genetics and boost productivity while rapidly rebuilding the nation’s hog population after it was decimated by African swine fever. “Some 15,346 live swine worth $32 million arrived by air in the first nine months of the year, customs data show. That’s an all-time high, according to Genesus Inc., an […]