The signing of the Phase 1 trade deal with China and approval in the Senate of the USMCA last week saw two positive developments on the trade front. Despite some resolution on these trade issues, markets reacted negatively. The USMCA, while providing stability with two major trading partners, held limited short-term upside potential for corn […]
Bloomberg writers Mike Dorning and Michael Hirtzer reported last week that, “President Donald Trump’s phase-one trade deal with China offers the promise of more overseas sales for American farmers, but the impact of the agreement remains unclear. “Trump has promoted a commitment by China to purchase $40 billion to $50 billion annually in farm products for the next two years. That compares with $24 billion in agricultural and […]
Just one day after the U.S. and China signed a Phase One trade deal, the Senate passed the U.S.-Mexico-Canada Trade Agreement (USMCA). Donald J. Trump ✔@realDonaldTrump One of the greatest trade deals ever made! Also good for China and our long term relationship. 250 Billion Dollars will be coming back to our Country, and we are […]
Financial Times writer James Politi reported on Wednesday that, “The US and China have signed an agreement to pause the trade war that has weighed on the global economy for nearly two years, while leaving in place tariffs on hundreds of billions of dollars of Chinese imports. “The so-called phase one deal signed at the White House on Wednesday offers […]
The USDA released a number of important reports for the grain markets on January 10, 2019, including the quarterly Grain Stocks report, Annual Crop Production Summary, and the monthly World Agricultural Supply and Demand Estimates (WASDE) report. In addition to all the estimates that garnered headlines, the USDA also released much less noticed revisions to production, ending stocks, and feed […]
The highly anticipated release of USDA’s crop production and ending stocks reports last Friday created a somewhat negative tone in corn and soybean markets. Despite the slightly bearish tilt, prices for both commodities closed higher on Friday. The pending phase one trade agreement and South American production prospects look to set the tone for prices […]
Lingling Wei reported in Friday’s Wall Street Journal that, “Chinese President Xi Jinping’s chief trade negotiator will travel to Washington early next week to sign a phase-one trade deal with the U.S., China’s Commerce Ministry said Thursday, the first official confirmation by Beijing on the signing of an agreement that could help ease bilateral tensions. “The Chinese delegation, to be led […]
This is a presentation summary from the 2019 Illinois Farm Economics Summit (IFES) which occurred December 16-20, 2019. A complete collection of presentations including PowerPoint Slides (PPT) and printable summaries (PDF) are available here. Crops Crop prices continue adjusting to the uncertainty around 2019 production prospects and the current trade environment. Barring a resolution to the […]
Agricultural Risk Coverage at the Individual Level (ARC-IC) should be considered as a commodity title alternative for 2019 and 2020 in two special cases: 1) if a Farm Service Agency (FSA) farm has all its acres as prevent plant or 2) the FSA farm has low yields. Other cases may exist as well (see farmdoc daily, October […]
A recent report from the USDA’s Foreign Agricultural Service (FAS) stated that, “Brazil is forecast to overtake the United States as the leading soybean producer in the world during the 2019/20 season.” More specifically, the report indicated that, “Post forecasts a record crop for the 2019/20 year, at 123.5 million metric tons (mmt). Brazil’s previous record crop was 122 mmt, recorded in […]