Rounding up in-depth weekly reviews on key ag commodities, transportation, fertilizer, energy and financial markets from the Farm Futures staff
Weekly Energy Review
Fuel costs not seeing big planting bump yet (4/23)
Farmers are the swing factor in demand for diesel. So when growers burn more in the spring and fall, prices tend to firm. That’s what’s happening to fuel costs again this spring. But so far this rally appears to be driven mostly by gains in crude oil, which rallied to new highs for 2015.
Weekly Basis Review
Corn and soybean basis strengthens most places in Midwest (4/23)
Farmers have plenty of excuses for not selling corn and soybeans from their storage bins right now. Most are busy with fieldwork, and futures prices remain near lows. Demand for grain is ongoing, forcing end users to bid up cash prices and strengthening the basis around the Midwest this week.
Weekly Fertilizer Review
Fertilizer costs could sink into summer (4/22)
While spring planting remains frustrating due to weather and low crop prices, enough demand from growers continues to support expensive fertilizer costs. However, prices for nutrients should be lower this summer for growers looking to pick up inventory ahead of fall application.
Weekly Financial Review
Weak growth not a bad thing for Wall Street (4/15)
Why would forecasts for slower economic growth in the U.S. be a good thing? The slower outlook is indeed positive apparently if you’re an investor. For one, it maintains pressure of the Federal Reserve to hold off on interest rate hikes. For another it helps hold down inflation. With corporate earnings good, Wall Street sees potential for its good times to keep on rolling.
This week's featured blog
Brazilian farm interest rates to climb
As inflation climbs, so do production costs for Brazilian farmers
Weekly Wheat Review
Wheat stands on a cliff (4/14)
The wheat market fights to hold winter lows, after a break below technical chart support was triggered by forecasts for rain over much of the hard red winter wheat crop. Any bounce may be limited, coming on a dry conditions for spring wheat on the northern Plains, and concerns about too much rain for soft red winter wheat.
Weekly Corn Review
Keep corn hopes modest (4/14)
Odds for a good spring rally are fading unless wet conditions delay planting significantly this year. That’s happened the past two seasons, when farmers planted less corn that estimated in USDA’s March Prospective Plantings report. But wet spring soils also make drought rallies less likely during the summer.
Weekly Soybean Review
Soybeans may cause heartburn (4/14)
Writing off the soybean market too early can be a dangerous thing. But with big supplies in the U.S. and around the world, it’s hard to make a case for prices to rally. There is one potential ace in the hole for soybeans however: ideas the 2014 crop was smaller than previously reported.
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