commodity prices
Record consumption to pare down corn stockpile
Processors, exporters and livestock feeders will use a record 13.8 billion bushels of corn this marketing year, helping to pare down the largest stockpile in nine years.
New Zealander elected as chair of WTO ag-trade negotiations
Agricultural negotiators at WTO elected Vangelis Vitalis, the New Zealand ambassador, to chair ag-trade discussions, the WTO announced.
For corn, soy and wheat, ‘no quick price recovery’
Farm-gate prices for corn, soybeans and wheat, the three most widely planted crops in the country, "have declined sharply from record levels set in recent years and no quick price recovery is expected," says the University of Missouri think tank FAPRI in an update of its agricultural baseline.
Massive crops to pull down market prices for year ahead
Corn, soybean and wheat growers will see the lowest farm-gate prices for their crops in several years, says USDA in its first forecast of the fall harvest.
Corn, wheat and soy dominate crop insurance
The three most widely planted U.S. crops - corn, soybeans and wheat - account for roughly 68 percent of crop insurance sales, says USDA, a dominating total but smaller than 15 years earlier. Then, the three crops were responsible for 80 percent of acres enrolled in crop insurance. With new types of policies and more crops eligible for coverage, the share held by the three major crops has declined. USDA says pasture, forage and range land zoomed to 48 million acres insured in 2012 compared to zero in 1997.
Farmer-owned co-op CHS earnings down 26 percent
The largest farmer-owned cooperative, CHS Inc., said earnings were down by 26 percent for the first nine months of its fiscal year, "primarily due to lower average prices for the refined energy products, grains and fertilizer that make up a significant portion of CHS business."
Record corn, soy crops on the horizon, traders say
The government will update its projections of the corn and soybean crops tomorrow at noon ET with analysts expecting a record-setting fall harvest. If the expectations prove true, the second year in a row of mammoth crops would leave the country awash in grain and drive down commodity prices. At Chicago, corn for delivery in December closed on Wednesday at $3.98 a bushel, down 1.6 percent for the day; in May, corn sold for more than $5, said Agrimoney.
Corn and soybeans may yield negative returns this year
Corn and soybean growers may see negative returns on their crops for the first time since 2000, estimates economist Gary Schnitkey of U-Illinois. At farmdoc daily, Schnitkey computes likely crop revenue and production costs for a typical farm in central Illinois with higher-yielding land. "Farmer returns have come down from high levels in 2012 to lower levels in 2013, to (projected) negative levels in 2014," he says.
Heading for lowest corn and soy prices in five years
Harvest time is months away but one result is clear - the lowest corn and soybean prices in five years - if crops are as large as USDA's planting data indicate. Analysts such as economist Darrel Good of U-Illinois say the average price for this year's corn crop could be "near $4" a bushel and soybeans "perhaps $10.50" for the 2014/15 marketing year. AgriMoney says the average cost of production in Iowa is $4.29 for corn and $11.13 for soybeans according to Iowa State University figures.
Soy crop to set record, corn to fall short, says KSU
U.S. soybean growers will harvest a record 3.6 billion bushels of the oilseed this fall but the corn crop, at 13.3 billion bushels, will run 4 percent short of a record, estimated economist Dan O'Brien of Kansas State University. O'Brien also forecast 2014/15 end stocks of 1.3 billion bushels of corn, largest since 2009/10, and 417 million bushels of soybeans, largest since 2006/07.
More belt-tightening by farmers is on the horizon
Corn and soybean growers will need to trim their cash flow again in 2016 if commodity prices repeat this year's comparatively low levels, says economist Gary Schnitkey of U-Illinois.
Market is glutted with used farm equipment
With commodity prices down, sales of used farm equipment are drying up as farmers guard their checkbooks, says DTN. The loss of "bonus" depreciation, which allowed a faster write-off of equipment purchases, also deters sales.
Farm subsidies soar in developing countries, panel hears
Major agricultural countries in the developing world, such as China, India and Brazil, are increasing their farm subsidies and displacing U.S. ag exports on the world market, two trade analysts told the House Agriculture Committee. "The United States, as the biggest agricultural exporter, suffers most from these distortions," said Craig Thorn of DTB Associates. U.S. negotiators have raised the issue at WTO discussions.
Senate bill obliges USDA to keep grain flowing for export
The Senate Agriculture Committee approved by voice vote a bill that obliges the USDA to minimize any disruption in federal inspection of grain for export, a vital step before U.S. grain can be loaded on cargo vessels. The legislation is a response to last summer's labor dispute that led to a month-long lapse in inspection at Vancouver, Washington. The House Agriculture Committee included similar language a month ago in its bill to reauthorize the Grain Standards Act.
Financial struggle as farmers face tighter margins
Growers across the country face tighter margins due to the combination of high production costs and sharply lower commodity prices, a panel of farmers told a House Agriculture subcommittee. They asked for action against farm subsidies overseas and for continued federal support at home. "For many Texas producers, there is no room for error" this year, said Steve Verrett, a cotton grower and executive vice president of Plains Cotton Growers in Lubbock, Texas.
Ag-sector strains weigh on economic outlook in some states
With farm income suffering from low crop prices and livestock producers facing tighter margins, more operators are borrowing money to cover short-term needs and some are having trouble repaying the loans, according to Federal Reserve banks in the Farm Belt. Agricultural bankers expect farmland values in the Midwest and central Plains to soften or hold steady through June. Land is a farmer's greatest asset.
In key report, USDA projects big corn, soy crops
The government will make its first estimate of the winter wheat crop and project the corn and soybean harvests in a pair of reports on Tuesday that traditionally rank among the most important of the year. They mark the moment when the USDA turns its attention to the new crops and when the key question for 2014's crops becomes the size of the stockpile when the marketing year ends.
EU easily tops US as world’s largest wheat exporter
The United States, traditionally the No 1 wheat exporter, will take a back seat to the European Union for the second year in a row, says the Grains: World Markets and Trade report. The EU is forecast to export a record 33.5 million tonnes of wheat this year, some 9.5 million tonnes more than the United States, which would tie for second-place with Canada. Last year, the EU edged the United States by half-a-million tonnes for the top spot. For Canada, this would be the first time its wheat exports match the U.S. volume, says USDA.