Markets - General
WTI oil prices crossed the $90 mark last week for the first time since 2014. Strong oil prices typically translate into strong demand for corn ethanol, but some analysts warn electric vehicles may put that on a detour.
As soybean prices race higher, some farmers may look to switch acres to soybeans this year. U.S. Farm Report analysts say with the acreage debate already heating up, the acreage battle could be the wildest battle yet.
“Exciting times I think are not behind us yet,” says Jerry Gulke, president of the Gulke Group. “Price volatility is going to be extreme from one week to another.”
Last year, prices rallied from January to May, and a repeat certainly is in the cards.
Soybean Prices are Crushing it this Week, Here’s What’s Causing Prices to Soar to New Contract Highs
As March soybeans soar above $15.50, what fundamental factors are driving the rally to start February? It may be a weather rally, but not from weather issues in the U.S. It’s now adding fuel to the 2022 acreage battle.
Agribusiness consultancies AgRural and AgResource on Monday trimmed their forecasts for Brazil’s 2021/22 soybean crop due to bad weather, estimating the expected output below the 130 million-tonne threshold.
Dry weather in South America, a brewing U.S. acreage battle and global unrest all took grain prices higher for the week.
The macro elements affecting ag prices are as dynamic as I have ever seen them.
From issues sourcing inputs to input prices holding at record and near-record levels, acreage decisions in 2022 are being shaped by more than just weather and commodity prices. And analysts warn more risk is ahead.