On Thursday, USDA released its latest supply and demand estimates for June, and as expected, most of the changes were minor tweaks. A 50 million bushel (mb) reduction in ethanol demand for corn and a 25 mb cut in soybean exports showed up, as expected. The slightly bullish surprise of the day was a lower-than-expected […]
Federal aid in the form of Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP) payments have increased returns and the financial stability of grain farms in 2018, 2019, and likely in 2020. However, corn and soybean returns have been low since 2013, when the growth of corn use in ethanol plateaued. Recent declines […]
On Tuesday, the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI) released its June Baseline Update for U.S. Agricultural Markets. The update incorporates government payment programs that were announced before June 1, 2020 and analyzes some of the market impacts of those programs. After outlining important assumptions, the FAPRI report included key outcomes relating to government […]
As the focus turns to the growing season and markets look to recover from the worst of the pandemic, export markets continue to reveal consumption information relevant to corn price formation during 2020. Exports in the corn complex will play a significant role in determining prices moving forward. Current marketing year estimates for corn exports […]
Reuters columnist Karen Braun indicated on Friday that, “U.S. soybean exports had a dismal April performance and possibly an even worse showing in May as shipments to China remain historically low, but corn exports hit a one-year high in April and improved on those volumes last month.” U.S. #agricultural #exports, year-to-date and current months, https://t.co/V85OpkE44w @USDA_ERS * Volumes. * #corn, #soybeans, #wheat. pic.twitter.com/cXZKMVxLhq — Farm Policy (@FarmPolicy) June 5, 2020 […]
Typically, November soybean futures prices see a bit of a rally in June. Hopes grew recently for a similar rally this year. The potential for any such price movement rests on the 2020 crop and export prospects. November soybean futures prices fell almost 13 percent since the start of the year. The prospect of a […]
On Wednesday, the Federal Reserve Board released its May 2020 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. * Sixth District- Atlanta– “Agricultural conditions softened. Most of the District remained drought free, with the exception of much of Florida, southern Louisiana, […]
According to EIA data analyzed by the Renewable Fuels Association for the week ending May 22, ethanol production shifted 9.2% higher, or 61,000 barrels per day (b/d), to 724,000 b/d-equivalent to 30.41 million gallons daily and the largest volume since March. However, production remains tempered due to COVID-19 disruptions, coming in 31.5% below the same […]
July corn futures prices hovered between $3.15 and $3.25 since late April. Corn prices continue to stay within a relatively narrow range and that pattern may remain for the next several weeks. The potential for prices to move out of the range depends on supply issues and, more importantly, the nascent economic recovery. As the […]
On Wednesday May 20th, the USDA released more information on the Coronavirus Food Assistance Program (CFAP). In today’s article we provide a broad overview of the CFAP and how payments will be determined for the major eligible non-specialty crops, livestock, and dairy. Applications for CFAP payments open May 26th and close August 28th with additional information and […]