Market Analysis
In 2016, wheat farmers have seen ugly circumstances, now they’re trying to help the problem by reducing acreage.
Scarce stocks could send prices soaring or crashing just as they did in 2008 and 2009, when prices rose to record-highs only to crash following the Great Recession.
Even though stocks are declining, supply remains secure worldwide.
The Kansas City Board of Trade’s December wheat contract prices have declined $1.94 to $7.05 since Aug. 29.
Between now and December 1, wheat prices may be anywhere between $7.50 and $11.
The USDA released the December WASDE reports Friday and the market just yawned.
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.