Markets - General
“It’s been a quiet week except for wheat,” says Jerry Gulke, president of Gulke Group. “Wheat has some promise, but we’ll have to see what happens in Ukraine and also with the weather.”
Harvest is underway in South America. Argentina hasn’t seen ideal weather, but it’s a different story for Brazil. AgResource Company’s Dan Basse just returned from Brazil where he got a first-hand look at the crops.
Prices are flat to lower this week, with March corn prices up a penny, and March soybean prices down 21¢ for the week ending Jan. 20. Wheat prices were down a few cents.
High prices will cure high prices. It is already occurring with acreage increases in South America and demand destruction in various regions.
Historically, corn basis has been wide in the Midwest and the western Corn Belt, while tight in the East. In 2022 it was the opposite. What happened?
For 2023, evaluate your production risk. I would only become aggressive once prices move beyond your breakeven costs.
Thus, the trend of the 2023/24 ag markets is clearly balancing on a tightrope of weather.
The Jan. 12 USDA reports held positive surprises for grain prices. March corn prices were up 20¢, and March soybean prices were up 35¢ for the week ending Jan. 13. Wheat prices were flat to up 11¢.
If you’re renting farmland to or from others, you have many things to consider – from managing long-term agreements and land improvements to zeroing in on the right insurance. Here are four boxes you’ll want to check
Brian Splitt of AgMarket.net says USDA increased U.S. crop yields in its November report, which historically signals USDA will raise yields again in the January reports. The move would tighten the crop balance sheets.