Market Analysis
Over the last several weeks, cotton prices have seen a decent run in prices. Ashley Arrington, founder of AgriAuthority, told AgDay host Clinton Griffiths cotton markets can be “dramatic at times, especially in relation to the July contract.”
Cotton markets usually aren’t discussed at the AgDay agribusiness desk. John Payne of Daniels Trading is discussing the cotton rally and the opportunities to market the crop.
Following the recent record-high cotton prices, demand for cotton has steadily decreased while output has increased.
Strong demand for cotton will push the new-crop annual average price to a new record high despite anticipated record-high global cotton production.
Farm Journal Economist Chip Flory joins AgDay’s Clinton Griffiths for analysis of the WASDE and Crop Production reports.
Lack of longer-term investors imperils crop markets, bank says
Cash rents are due in roughly 30 days, and some farmers are looking at ways to generate some cash. One way to do it is to move grain, and that’s when basis can come into play.
Earlier this year, China announced they would require ethanol blends in all fuel by 2020. This announcement gave U.S. corn producers hope that this could bump corn prices in the coming years in preparation.
In 1983 for the first time, planted soybean acres surpassed corn acres by 3.5 million acres. Some market analysts thought 2017 would be another year this would happen, but it didn’t.