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Rising Crop Prices Boost Rural Economy
- The rural economy rallied to its highest level in 2014 this past month because of increasing crop prices and economic conditions.
- Farmland values declined slightly but the belief is that the increase in crop prices over the last several months should boost land values over the summer.
- Extreme support for the Keystone XL Pipeline construction was expressed by bankers surveyed.
Crop Progress Report: Corn Planting Near 5-Year Average
- The USDA estimated 73% of corn acres were planted across the U.S. as of May 18th, a 14% increase from the prior week.
- Soybean planting lost some ground on the five-year average due to wet and cold weather in the major growing regions.
- Winter wheat conditions were slightly changed from the past week.
Farmland Values Held Back By Waning Grain Prices
- Farmland values increased year-to-year in the Seventh Federal district by 1%.
- Values decreased 1% relative to the fourth quarter 2013.
- Farmland Values are expected to remain stable through the second quarter of 2014.
USDA Weekly Exports: Corn Sales Rebound Following Marketing Year Low
- The World Agricultural Supply and Demand Estimates (WASDE) released by the USDA last week estimated an ample supply of corn, soybeans, and wheat for the 2013/14 and 2014/15 marketing years.
- Corn sales rebounded heavily following a reported decrease last week. Soybean sales also increased for the second week in a row. Wheat sales continued to decline.
- Soybean and wheat exports both increased from the prior week. The 2013/14 marketing year for wheat closes at the end May. Corn exports fell.
Crop Progress Report: Farmers Overcome Poor Conditions To Get Corn Planting Back On Track
- Following weeks of poor weather, including rain and below average temperatures, farmers were finally able to get caught up on their planting, doubling the planted acres estimate in one week.
- The USDA estimated 59% of corn acres were planted across the U.S. as of May 11th, a 30% increase from the prior week.
- Soybean planting is on schedule with 20% of the overall acres planted, just 1% behind the five-year average.
- Winter wheat conditions were slightly changed from the past week. The USDA reported that 20% of the wheat was in very “poor” condition from 17% last week.
Why Invest In Farmland? (2014 Edition)
- An investment in farmland over the long-term will provide a steady stream of income and capital gains due to the increasing global demand for agricultural commodities.
- Driven by the rising world population, rapid growth in emerging markets, and continued demand for ethanol and biofuels.
- Demand for agricultural commodities is outpacing supply, positioning farmland for long-term appreciation.
WASDE: Corn Demand Weighs On Stocks
- U.S. corn demand continues to rise as export estimates in May have increased 150 million bushels following a 125 million bushel increase in the April WASDE.
- The corn stocks-to-use ratio has dropped from 9.9% in April to 8.4% in May. Soybean and wheat estimates were mostly unchanged for the 2013/14 marketing year.
- May's report took a first look at the 2014/15 supply and demand estimates; these estimates should not be taken heavily into consideration due to an abundance of production risks.
USDA Weekly Exports: Domestic And Global Pressures Cause Major Grain Market Fluctuation
- Planting delays and tension in Ukraine lead to fluctuation in market.
- Corn sales impacted along with soybean and wheat exports.
- Corn exports up along with soybean and wheat sales.
Crop Progress: Favorable Weather For Planting Season
- Corn planting progresses.
- Soybean planting in second week of reporting.
- Winter wheat conditions worsen.
April Planting Delayed As Farmers Wait For Spring
- Poor weather has delayed planting, causing concern for this year's corn crop.
- Ethanol prices spike due to logistical issues on the railways caused by the oil boom in the western Dakotas.
- Despite the late start to planting, many farmers are still confident that there is enough time to complete corn planting, barring continued wet and cold weather into mid-May.
Crop Progress Report: Planted Corn Acres Increased 13%
- Cold and wet weather has delayed planting across much of the U.S.
- The USDA Crop Progress Report released today estimated 19% of corn acres are planted across the U.S., a 13% increase from the prior week.
- Corn, $5.13 per bushel, and wheat, $7.08 per bushel, both traded 5% higher from the past week, while soybeans, $14.98 per bushel, traded less than 1% lower.
Increasing Crop Prices Main Factor In Rural Economy Turnaround
- Rural economy growing for second straight month.
- Farmland price index still below growth neutral.
- Bankers believe breakeven price for corn is $4.30.
USDA Weekly Exports: Ukrainian Unrest Catapults Wheat Sales
- Wheat sales rebounded from a marketing year low on the news that civil unrest in Ukraine has split the country.
- Soybean sales continue to decline but total commitments this year have exceeded the USDA's projections.
- Crop Progress report released Monday estimated 3% of corn acres planted thus far. A 1% increase from this time last year, but a 3% decrease from the four-year average.
USDA Weekly Exports: Wheat Sales Hit Marketing Year Low
- U.S. wheat sales declined sharply reaching a marketing year low and have declined nine out of the last 10 weeks.
- Corn sales and export levels declined, but reported levels are well above those seen in 2013 and 2012.
- Soybean sales increased slightly and have been on the rebound following the marketing year low reported for the week ending March 20th.
WASDE: Exports Lower Corn And Soybean Stocks
- Ending stocks decreased.
- Exports increased.
- Planting season ahead.
USDA Weekly Exports: Corn Exports Continue To Increase
- Corn exports increased to the second highest level of the 2013/2014 marketing year.
- Soybeans exports continued to decline consistent with the trend seen over the past month.
- The quarterly grain stocks report released Monday showed domestic stocks of soybean and wheat down in comparison to 2013, while corn stocks were reportedly up 30%.
- The USDA Prospective Planting report was also released Monday. The report showed a large shift to soybean planted acres, a move that had been speculated by most analysts.
Revamped Subsidies For Grain Farmers Emphasize Crop Insurance
- Agricultural subsidies are a fiercely argued topic, especially when the farm bill is in the news.
- For the vast majority of U.S. farmers who grow corn, soybeans, and wheat, farm subsidies provide little to no income assistance.
- The Organization for Economic Co-operation and Development (OECD) estimated in 2013 that farm subsidies make up 7.1% of income for American farmers, this in contrast to the EU 19%, Russia.
- For an industry that is susceptible to many different and unpredictable variables, the need for affordable insurance is important.
- The average age of a farmer has risen to 58.3 years old with a third of farmers being older than 65.
Increased Soybean Acreage At Corn's Expense
- Favorable profit margins for soybeans have farmers increasing soybean planted acreage in 2014 by five million acres.
- Estimated corn planted acreage was the lowest since 2010.
- In the past two months, corn prices have made a comeback due to domestic ethanol demand, global feed demand, and tensions in Eastern Europe.
USDA Weekly Exports: Corn Exports Spike Reaching Highest Level Of 2014
- Corn exports reach highest level in 2014.
- Soybean sales and exports decline, with reported stocks 50 million below the 2013 level.
- Prospective planting estimates suggest less of a shift to soybeans than earlier suggested.
USDA Weekly Exports: Week-To-Week Sales And Exports Decrease
- Sales and exports declined week over week for corn, soybeans, and wheat.
- Corn and wheat exports remained above their 10-week average.
- Soybean exports fell below 1 million bushels for the first time since early October.
WASDE: Grain Exports Less Than Expected
- Chinese demand growing for soybeans as U.S. stocks at 16-day supply.
- Corn ending stocks 25 million bushels lower.
- U.S. wheat balance sheets unchanged.
USDA Weekly Exports: Sales Volumes Continue To Increase
- Corn and soybean sales continue their upward trend, significantly outpacing their 10-week averages.
- Exports for wheat and corn also rose from last week.
- Soybean exports continue to slowly decline from marketing year highs seen in late 2013 early 2014.
Ukrainian Unrest And Russian Aggression Result In Unpredictable Grain Market
- Ukraine’s importance in the global grain market has grown as the country has become one of the world’s largest exporters of corn and wheat.
- Beginning Friday, on the news that Russian troops had entered Ukraine, corn prices in the US have gone up $0.17 or 3.5%.
- In the short term, grain prices will continue to feed off of the uncertainty around one of the largest exporters of grain in the world.
- Grains Rally In Cold Weather
- USDA Weekly Exports: Net Corn And Soybean Sales Rebound From Last Week
- Extreme Cold And Falling Crop Prices Blamed For February Slowdown
- USDA Weekly Exports: Difficult Market Conditions Hamper Sales And Exports
- Confidence In Farmland Values Remains Strong
- Farmland Values Reach New Heights Despite Adversity
- USDA Weekly Exports: Corn And Wheat Sales Remain Strong
- Farm Income Expected To Outpace Prior 10-Year Average
- WASDE: Rising Exports Decrease Corn Supplies