Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
WOTUS has remained a source of friction & controversy since the Obama admin. put forth its more-restrictive definition in 2015 that was then replaced by the Trump admin. via the Navigable Waters Protection Rule.
The broader economic and geopolitical situation seemed to weigh upon cattle futures Thursday.
Volatility is here to stay in the grain markets — but so could higher prices.
Price rationing could last at least 15 months, or until the 2023 South American soybean crop is seen as a record.
Russia will provide farmers with short-term loans with preferential rates worth over 160 billion rubles to ensure they have access to the inputs for a successful planting season, according to Prime Minister Mishustin.
With the recent Russian invasion of Ukraine, farmers should consider revenue protection crop insurance at a high level, according to agricultural economists on the University of Illinois farmdoc website.
In the March World Agricultural Supply and Demand Estimates (WASDE) report, USDA made a deeper cut than expected to global soybean production.
Oil prices are expected to increase to an average of $117 per barrel for March, up $20 from its February average, EIA said in its Short-Term Energy Outlook.
Grain and cotton prices will likely continue to push higher, Goldman Sachs said in a note to investors and reported by Bloomberg.
We could be headed for a volatile year – or more – in both ag commodities and energy. Here are just a few reasons for strong prices.
U.S., Britain and Shell Oil halt Russian oil imports
China’s Minister of Agriculture and Rural Affairs Tang Renjian reported the country’s winter wheat condition could be the worst in history.
More countries are putting in measures to guarantee grain supplies.
Ukraine calls for Russian export halt to include oil
Wheat buyers from the Middle East/Mediterranean region and North Africa are switching their wheat purchases to various European countries . . .
Russia is the second-largest producer of ammonia, urea, and potash and the fifth largest producer of processed phosphates.
May soybean futures fell 7 1/4 cents to $16.60 1/2 after tumbling from a morning high at $16.88 1/2. The most-active contract still gained 76 cents this week.
The head of trading for CBH Group, Australia’s largest coop, expects more demand in the short and medium-term due to the loss of exports from the Black Sea area, Bloomberg reported.
Nearby soybeans gained on spillover from the wheat market’s steep rally but faded on profit-taking and indications that stepped-up Chinese demand and a South American crop shortfall are factored into prices.
Egypt looking at plans for wheat procurement
The Biden administration may have to open the Conservation Reserve Program (CRP) to cropping this year because of grain shortages that could result from the Russian invasion of Ukraine.
The 2022 spring crop insurance price for corn is $5.90, $1.32 higher than last year.
China is heading into peak demand season for many commodities.
U.S. open to Russian oil sanctions, just not yet
Corn buyers, especially those in Benelux, Iberia, the Middle East and North Africa, are changing their purchases to the EU from Ukraine due to the Russian invasion, according to traders.
Major global grain producers and exporters Russia and Ukraine remain in a full-scale war with no end in sight and that’s keeping the grain futures markets unnerved.