Market Analysis
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.
When USDA released its September Crop Production and World Agricultural Supply and Demand Estimates (WASDE), corn and soybean prices saw red.
Summer crop harvest is a few weeks away, and bin space could be a concern to some farmers.
The latest crop progress report from the U.S. Department of Agriculture (USDA), 67 percent of the corn crop was rated good to excellent. Indiana is lagging behind with only 45 percent of its crop in that category.