Markets - General
Last month, the U.S. issued a statement it would be putting 30 percent tariffs on solar panels and washing machines imported from China. Less than two weeks later after the announcement, China is fighting back.
In spite of what we heard for months of sideways trading markets and media fear of being saddled long term by mountains of grains (especially corn), some real issues are surfacing.
Farmers Business Network, a start up in California’s Silicon Valley, lets growers share details on farm data including seed performances and chemical prices.
The story for corn doesn’t seem to be improving. Ethanol demand continues to be weak, and improved planting progress shocked the market. T
USDA says farmers intend to plant 97 million acres of corn in 2020. As COVID-19 acts as an anchor on the markets, and the ethanol crisis continues to unfold, some analysts say 97 million acres could be a stretch.
With a large increase in corn acres, and declining ethanol demand, the U.S. could be swimming in supplies. That’s why one analyst thinks there’s downside price risk with putting corn in the ground this year.
In 2019, U.S. farmers planted a 91.7 million acres. Expect that number to grow by nearly 3 million acres this year, according to Allendale.
Corn has been stealing the spotlight for months. But farmers need to keep their eyes on soybeans, experts say.
Farmers are taking some of the trade war risk off the table by planting fewer soybeans and more corn.
It’s harder to devote time when field work is calling but analysts say market opportunities come at any time—so be vigilant.