Old crop corn basis and futures spreads continue to signal a smaller crop scenario than the price levels in the futures market suggest. Futures price levels reflect the uncertainty associated with the coronavirus and the potential weaker growth its continuation promises. Producer grain holding remains the popular explanation for a strong basis and small futures […]
Following this month’s release of the USDA’s Long-Term Projections, on Thursday, the Department released its quarterly Outlook for U.S. Agricultural Trade. This update provided an overview of agricultural trade based on the 2020 fiscal year, which began in October, months before the U.S. and China signed the Phase-One trade agreement. Recall that Phase One farm purchase commitments are based […]
Soybean prices put in a moderate rally last week. An outlook for a large South American soybean crop and uncertainty of the impact on economic growth associated with the evolving coronavirus situation hang over U.S. soybean demand scenarios moving forward. Expanding soybean acreage in 2020 looks to test the prospects for lower ending stocks despite […]
U.S. Secretary of Agriculture Sonny Perdue issued a proclamation naming February 16-22 as Grain Bin Safety Week. Earlier this week, the Secretary sat down with the Governor of South Dakota, Kristi Noem, to talk about the importance of grain bin safety on the farm. Governor Noem grew up on a farm in Hamlin County, South […]
On Friday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector. The report noted that, “While agricultural crop prices are tending to trend upwards only slowly in nominal terms, U.S. trade disputes with China that existed at the time of these projections were formulated have dampened expectations, particularly for soybeans. These projections assume […]
Because of difficult harvest conditions last fall, grain may have been stored with higher than normal moisture content, which could pose a danger to anyone working around the grain. “High-moisture grain storage leads to bin unloading problems,” warns Ken Hellevang, North Dakota State University Extension agricultural engineer. “Grain may be in clumps due to high-moisture […]
Uncertainties regarding the potential trade deal and coronavirus outbreak remain as negative forces for commodity markets. Corn prices came through the difficulty relatively well over the last couple of weeks. March corn futures prices continue to bounce around in a range between $3.75 and $3.95 seen since mid-December. Over this same period, consumption in some […]
Principal crops planted in the United States declined from 319.3 million acres in 2018 to 302.6 million acres in 2019, a decline of 16.7 million acres. Assuming that we return to a more normal prevent plant year, planted acreage will likely be around 320 million acres in 2020. The crops planted on the additional 17 […]
Bloomberg writer Peggy Collins reported late last week that, “China’s leader Xi Jinping reassured U.S. President Donald Trump in a phone call that Beijing would meet purchase goals outlined in the recent trade deal between the countries — despite the impact of the coronavirus on the Asian nation, White House economic adviser Larry Kudlow said Friday. “‘Xi apparently said, may be a little […]
Wall Street Journal writer Lingling Wei reported on Thursday that, “China said it would slash tariffs on $75 billion of U.S. imports in half as part of its efforts to implement a recently signed trade agreement with Washington. “Beginning Feb. 14, China will cut tariffs on some U.S. goods to 5% from 10%, while levies on some other items will be reduced […]