Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
The grain markets posted another healthy week of higher prices. But are these prices getting too high?
Record March soybean crush report expected
In March, a total of 24,715 tractors were sold in the U.S., compared to 31,276 sold during the month last year, a 21% decrease, according to the Association of Equipment Manufacturer’s monthly “Flash Report.”
March’s PPI showed food costs climbed 2.4% from a month earlier, the largest increase since May. The jump was driven by higher grain, vegetable, cooking oil and pork prices.
Higher producer prices signal higher future food costs
Crop Consultant Dr. Michael Cordonnier raised his estimate of Paraguay’s corn crop by 1.5 MMT . . .
This summer’s average retail diesel price is estimated to average $4.57 per gallon, according to EIA.
Some analysts skeptical about the E15 impact
It was the “big swap” many didn’t expect. What makes it believable is total corn and soybean acreage intentions of 180.5 million is nearly unchanged from 2021.
Australia exported 2.8 MMT of wheat in February, which is thought to be a monthly record for the country, according to the Australian Bureau of Statistics (ABS).
USDA trimmed Brazil’s soybean production to 125.0 MMT, down 2.0 MMT from its March report and 14.5 MMT below last year.
U.S. corn, wheat carryouts higher than expected
The Buenos Aires Grain Exchange warned Argentina’s soybean production could fall below the current estimate of 42 MMT due to frosts over the past week.
Commodities could soar by as much as 40% if investors increase their investments in raw materials as an inflation hedge, according to JPMorgan Chase & Co.
EPA denies 36 small refinery biofuels waivers
Argentine farmers might plant as many as 2 million hectares (4.9 million acres) of sunflowers for the 2022-23 growing season, Bloomberg reported.
Limited supplies and higher prices for commercial fertilizers have increased demand for manure.
Beef exports stay strong, pork exports slump
Wild swings in commodities from wheat to crude oil are here to stay, with global supply chains getting reassessed in the wake of Russia’s invasion of Ukraine, according to Gregory Broussard. . .
February’s U.S. trade deficit declined less than $100 million from January’s revised $89.2 billion record, according to the U.S. Census Bureau.
Iowa Attorney General Tom Miller and Kansas Attorney General Derek Schmidt asked EPA to allow the sale of E15 this summer . . .
Corn, spring wheat planting in line with year-ago...
Before Putin’s forces even breached the Ukraine border, fear and speculation drove commodity prices skyward. Concerns are warranted.
February corn-for-ethanol use well above last year
The March 31 reports from USDA provided the markets with a few surprises. Did they reset the tone for prices moving forward?
U.S. Trade Representative Katherine Tai said the U.S. must shift the focus of its trade policy to rebuilding its domestic manufacturing industries and lessening ties to unfriendly economies.
USDA announced that ranchers who have an approved 2021 Livestock Forage Disaster Program (LFP) application would soon begin receiving emergency relief payments for increases in additional feed costs in 2021. . .
March 1 stocks offers no major surprises for a change