Clients keep asking as to what will be the most adverse impact of the virus on the US and world grain markets? Everyone in the grain business wants to understand where “value” is in CBOT values ahead of the arrival of spring. Stated plainly; “How low can CBOT corn, soybean or wheat values fall?” AgResource…
AgResource estimates US combined corn, soy, cotton, wheat and sorghum seeding in 2020 at 242 Mil Acres. This compares to final acres in 2019/20 of 230 Mil, but is down slightly from seeding intentions a year ago. ARC notes that total 2010 cropped area in the US fell 13 Mil Acres from March to final.…
World financial markets have collapsed amid the pandemic fear of Covid-19. Non-Chinese countries are reporting are growing daily tally of infections which is causing air travel to seize up while public events are being canceled. A global financial recession seems unavoidable as consumers knife spending and stay within the safety of their own home. CBOT…
Recent and upcoming market direction will be determined by the global macroeconomic landscape. On Wednesday, AgResource highlighted the impact of weakening currencies on non-US production as well as importers’ ability to expand their trade. Today, we highlight the impact of $30-40/barrel crude oil. The attached graphic shows the EIA’s official annual US miles driven per…
It’s difficult to separate all the negative headwinds facing US agriculture at the moment! Unfortunately, oversupply will be the dominant theme in commodity markets with normal weather over the next several years. But it’s important to recognize structural trends so risk can be managed. This is why ARC has been adamant about selling forward since…
