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China came in with a major buy to start the week. USDA confirmed in its daily export sales report that Beijing purchased 1.084 million tonnes of U.S. corn marking the biggest buy since May of 2021.
Before Putin’s forces even breached the Ukraine border, fear and speculation drove commodity prices skyward. Concerns are warranted.
USDA says there are currently no plans to provide direct payments to farmers impacted by soaring fertilizer prices. The news comes as farm groups and lawmakers are asking assistance to help with rising fertilizer costs.
A growing number of lawmakers, farm groups and farmers are pleading for assistance from still surging fertilizer prices. One possibility for USDA would be to tap the Commodity Credit Corporation (CCC) Charter Act.
USDA’s Prospective Plantings report came with some shocks as farmers revealed 2022 planting plans. Despite the higher than expected soybean acreage numbers, some analysts say the soybean balance sheet is still tight.
The Ukranian government announced removal of corn and sunflower oil export license requirements to allow for easier exports, while also hoping the sale of the commodities will provide money for spring planting.
From changes in corn and wheat acres to more producers looking to plant soybeans, FBN’s 2022 Planting Report could be an early indication of what USDA’s March Prospective Plantings report will show later this week.
Farm commodity prices, production costs and consumer food prices are higher than would have been expected a few months ago, according to the 2022 U.S. Baseline Outlook report by FAPRI.
For March 2021, the Rural Mainstreet Index sits at 65.4. That is up from February’s 61.5.
Volatility is here to stay in the grain markets — but so could higher prices.