The Prospective Plantings report, released on March 31, indicated producer intentions to plant almost 97 million acres of corn in 2020. Under current planting intentions and consumption trends, a massive corn supply appears feasible during the 2020-21 marketing year. Producer intentions to plant principal crop acreage show a 16.5 million acre increase from 2019. The USDA estimates […]
The April edition of the Market Monitor, a publication from the Agricultural Market Information System (AMIS), stated that, “Despite much uncertainty caused by the rapid spread of COVID-19, global food markets remain well balanced: cereal stocks are expected to reach their third highest level on record this season and export availabilities for all AMIS crops are more than adequate to meet the anticipated […]
Wall Street Journal writer Kirk Maltais reported this week that, “Consumers’ rush to buy groceries is fueling a rally in orange-juice prices, making the usually sedate asset the best-performing commodity in the first quarter of 2020. “The price of frozen orange-juice-concentrate futures trading on the Intercontinental Exchange has surged 24% to more than $1.20 a pound since March 19—a run resulting from […]
Wall Street Journal writers Kirk Maltais and Joe Wallace reported this week that, “Consumers are loading up on pasta, rice and bread. Farm supply lines are disrupted. Countries are restricting agricultural exports. The result: Prices of wheat and rice, two of the world’s staple grains, are rising sharply. Difficulties moving grain within countries and across borders, coupled with […]
Reductions in the sales value of unpriced grain likely will be the first place where grain farms feel the impacts of COVID-19 control measures. Overall, old-crop sales likely will be reduced from expectations prior to COVID-19 concerns. Some farms will be more impacted by these concerns than other farms. Before discussing old-crop cash flows, a […]
Wall Street Journal writers Siobhan Hughes and Natalie Andrews reported on Friday that, “President Trump signed a roughly $2 trillion stimulus package into law, hours after House lawmakers hustled back to the Capitol to pass the aggressive response to the coronavirus pandemic that has staggered the U.S. economy. “The bill is the largest relief package in U.S. history and extends aid to […]
Extraordinary restrictions have been put in place in an attempt to slow the spread of the coronavirus in the U.S. and many other nations. The restrictions range from shelter-in-place orders to milder social distancing guidelines. The result is a contraction in economic activity unlike anything witnessed since the Great Depression. For example, the U.S. Department […]
Last week, New York Times writer John Schwartz reported that, “Brace for another flooded spring — but not one as bad as last year, forecasters from the National Oceanic and Atmospheric Administration warned on Thursday. “‘Flooding continues to be a factor for many Americans this spring,’ with major to moderate flooding likely to occur in 23 states, said Mary C. Erickson, […]
Wall Street Journal writers Jacob Bunge, Kirk Maltais, and Jesse Newman reported on Saturday that, “The new coronavirus is dealing another blow to the struggling U.S. agricultural sector, driving down crop and livestock prices and threatening labor shortages for farms. “Even as consumers clear food staples from supermarket shelves, Midwestern farmers’ prospects have dimmed. Agricultural futures on the Chicago […]
The planting season begins another year under considerable uncertainty. While trade issues remain, the continued spread of the coronavirus and the ensuing market collapse complicates an already difficult decision. Projections from many market observers indicate increases in corn and soybean acreage in 2020. The March 31 Prospective Plantings report provides the initial indication of potential […]