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…
Global corn supply & demand was only modestly adjusted. Combined Brazilian & Argentine production is unchanged at 151 MMTs, vs. 152 MMTs last year. Amid the arrival of needed rain to Central Argentina this week, only Brazilian dryness in April-May can materially alter South America’s exportable corn surplus. ARC does mention that South African corn…
The March International trade report confirmed that the record large US pork export rate persisted through January. US pork exporters shipped 663 Mil Lbs of pork, a 39% increase over last year, the largest January export rate on record. US packers manufactured a record large 2,553 Mil Lbs of pork in January with exports as…
