Ag Economics on the Plains
Ag Economics on the Plains
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High Plains Ag Week 6/20/19

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This week saw a rise in grain and soybean contracts followed by a decline on ‘profit taking’ in managed money accounts. DEC Corn rose to a little over $4.70 on Monday and has traded below that level for the rest of the week. USDA Crop Progress on Monday finally had corn plantings at 92% which is still behind average planting pace, but is the first week to rise above 90% for the 2019 crop year. [Read more…] about High Plains Ag Week 6/20/19

High Plains Ag Week 5/31/19

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Written with: David Anderson 

Corn: The shortened week following Memorial day saw continued growth in grains and cotton with declines in the nearby live and feeder contracts. In the last three weeks DEC Corn ($4.326/bu) has climbed almost 20.0% on significant planting delays, particularly in the Midwest. As of May 26 the Crop Progress report has Texas at 93.0% complete in corn plantings, although I’ve heard of some delays in our northeastern counties. The Texas A&M AgriLife Extension budgets for District 1 estimate a break even price for irrigated corn of $4.01. Given the increasingly uncertain trade environment (more on the newly proposed tariffs on Mexican products later), and the stage of production for the year, this might be a good opportunity to protect production with some puts or another form of risk management.  [Read more…] about High Plains Ag Week 5/31/19

High Plains Ag Week – 5/24/19

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This week showed near $0.50 gains in DEC Corn over continued planting delays. By the beginning of next week, expect only 50.0% of the total crop to be planted at most, with significant production states severely behind due to rainfall that will almost certainly lead to prevented plant decisions (if the new MFP announcement doesn’t distort acreage, more on that later). [Read more…] about High Plains Ag Week – 5/24/19

High Plains Ag Week – 5/17/2019

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The week was split in to two sections; 1) Price declines from trade worries and 2) price rebounds from continued planting woes. The week started out with precipitous declines in wheat, corn, soybeans, and cotton, all trading on the previous Friday’s new tariffs from the Trump administration and the news of new and increased tariffs on U.S. goods out of Beijing. Dec Corn dropped over 2.0% from Monday open to Tuesday’s low, while wheat and soybeans dropped over the weekend. Once the new bearish news from the tariffs was priced in the fundamentals from delayed plantings and forecasts of more wet weather took hold. See the Soybean and Corn tables below for just how far behind planting is in some key states according to the 5/13/2019 Crop Progress Report. Delayed plantings mean potential for lowered supply, and therefore specs and others begin entering long positions, especially since the price was already so low on the trade spookiness. Dec Corn is showing significant strength as prices rebounded above $4.00 Thursday night. [Read more…] about High Plains Ag Week – 5/17/2019