Soybean Outlook Update Following USDA’s June WASDE Report
Soybean futures volatility increased sharply this week as futures prices responded to concerns about dry weather possibly impacting crop yields. Purdue ag economists James Mintert and Nathanael Thompson discussed the updated soybean outlook on the latest Purdue Commercial AgCast video podcast.
Read MoreCorn Outlook Update Following USDA’s June WASDE Report
Purdue ag economists James Mintert and Nathanael Thompson discussed the updated corn outlook following USDA’s June World Ag Supply and Demand Estimates (WASDE) report on the latest Purdue Commercial AgCast video podcast. The latest corn crop condition ratings were discussed along with implications for 2023 U.S. corn yield, production and carryover stocks.
Read MoreFarmer Sentiment Sours as Crop Prices Decline
Purdue ag economists James Mintert and Michael Langemeier share some insight into the results of the May 2023 Purdue University-CME Group Ag Economy Barometer survey. Producer sentiment fell to its weakest reading since July 2022, as the Purdue University-CME Group Ag Economy Barometer Index declined 19 points to a reading of 104 in May. This month’s survey was conducted from May 15-19, 2023.
Read MoreCorn Basis Implications from July-September Futures and Weather Conditions
Corn and soybean basis has been relatively steady in recent weeks in most regions of the eastern Corn Belt. Attention now shifts to the July-September corn futures price spread, which has a strong inversion—September trading for $0.73/bu. less than July. How will this impact basis patterns for the remainder of the summer?
Read MoreContingency Planning with Cash Flow Shortages
Contingency plans related to how to respond to changes in projected cash flows are also important. Given the expected drop in crop prices this fall, it would be prudent for a farm to examine the sensitivity of their cash flow and repayment capacity to changes in crop prices.
Read MoreImpact of Lower Corn Prices on Swine Feed Costs
Indiana corn prices during the first quarter of this year were on average approximately $6.60 per bushel. The most recent WASDE report indicates that corn prices could be substantially lower for the upcoming crop.
Read MoreNew and Improved Crop Basis Tool
It is hard for me to believe, but the Purdue Center for Commercial Agriculture Crop Basis Tool has been around for more than five years. Since then, the Tool has served as a valuable source of current and historical corn and soybean basis information for producers and grain industry participants.
Read MoreWhat Does the Federal Fund Rate Increases at May FOMC Meeting Mean?
During the May 3rd Federal Open Market Committee (FOMC) meeting, the FOMC voting members raised the Federal Funds Rate by another 25 basis points; making the target Federal Funds Rate between 5% and 5.25%. This Federal Reserve has consistently increased the Federal Funds Rate during each FOMC meeting for over a year.
Read MoreWhy is Managing Strategic Risk So Important in Production Agriculture?
Strategic risk is difficult to quantify. Despite this fact, it is important to prepare risks impacting U.S. farms and build resilience.
Read MoreU.S. Corn Exports Struggle to Meet USDA’s Weak Export Forecast
Seasonally, U.S. corn exports tend to peak in the spring and weaken into the summer months. Although weekly corn export shipments have improved since late winter, they have not increased enough to offset weak exports last fall and especially during much of the winter.
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