Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Negotiations are underway in Congress on provisions in the Ukraine aid package forwarded by President Joe Biden, including provisions that would provide a temporary boost in commodity loan rates. . .
Ukraine’s 2022 wheat crop is likely to be “close” to last year’s 32 MMT output, APK-Inform ag consultancy quoted the National Academy of Agrarian Sciences of Ukraine as saying.
A bullish set of fundamentals pushed corn prices to this high level, says Dan Basse, president of AgResource Company, and those factors could actually be getting more bullish.
Biofuel & farm groups see E15 & higher blends of corn ethanol into gasoline as the strategy to increased sales, but the current structure of the RFS “does not serve to incentivize ethanol blends higher than E10...
The European Union has agreed on a 7% cap for food-based biofuels. Germany is seeking to reduce that figure further.
History strongly suggests retailers will be buying beef quite strongly over the next six weeks.
Farmers in Canada are struggling to plant crops in fields that are either too wet or too dry in the Prairie provinces.
One of Brazil’s largest farmers plans to reduce fertilizer use by a quarter next season, relying on more precise applications and soil testing to maintain crop yields, Bloomberg reported.
U.S. consumer demand for retail meat remains exceptionally strong despite higher prices stemming from increased production costs and supply-chain limitations.
Canadian farmers are expected to plant 25.0 million acres of wheat in 2022, up 1.6 million acres from last year and 800,000 acres more than traders expected, according to Statistics Canada.
From planting delays to governmental influence, the grain markets are being impacted by a plethora of factors.
EPA issues E15 summer emergency waiver
Ag production incentives part of Ukraine assistance request
The end of the South American monsoon has come earlier than average this year due to La Niña. The drier finish on the Safrinha crops will limit their yield potential.
Indonesia’s palm oil export ban has re-ignited the discussion of using cooking oils to make biodiesel.
Mato Grosso, Brazil’s top safrinha corn producer, is facing its driest April in 17 years, according to weather service EarthDaily Agro.
Ukrainian farmers in the southern region of Zaporizhzhia are determined to get their fields planted this spring.
Part of Brazil’s safrinha corn facing dryness concerns
Global food and fuel price shocks linked to the Russia/Ukraine war are likely to last until at least the end of 2024 and raise the risk of stagflation, the World Bank said in its latest Commodities Market Outlook report.
Price discovery suggests price will go high enough until demand is curbed sufficiently so we will not run out of stocks, but someone(s) might have to use less.
World Weather Inc. predicts the Midwest will see a mix of rain and sunshine during the next two weeks.
CME Group announced some price limits for grains and oilseeds would be reset starting May 1 for the trade date of May 2, 2022.
30 day outlooks for corn, soybeans, wheat and cotton.
The weak yen is one reason prices are rising in Japan, with consumer price inflation expected to approach the central bank’s longstanding 2% target in the next month or two.
This week corn prices topped $8 per bushel and soybean prices topped $17 per bushel. With slow planting progress, these prices could be trying to attract or commit acres to certain crops.
Cattle on Feed Report: Placements top expectations
In response to market prices, oil refiners are planning to increase jet fuel and diesel production instead of gasoline this summer.
For total grains, IGC cut production by 12 MMT, trade by 9 MMT and carryout stocks by 26 MMT from its 2021-22 estimate.