As 2017 got underway, the question on everyone mind was if U.S. soybean acres would exceed corn acres. While this didn’t happen, the stage was set by more favorable prices and budget returns for soybeans. Given soybeans more favorable position for U.S. producers in recent years, we step back to review the global soybean production trends. This post builds off earlier work that considered corn (here and here) and beef trends (here). More specifically, this week’s post considered changes in global soybean production, the source of those increases, and the major players. Continue reading →
Planting intentions for 2016 will draw considerable attention in the coming months. Crop insurance guarantees are one factor which will play into this decision. As we pointed out last year, crop insurance guarantees have fallen considerably in the past two years and barring a rally, guarantee prices are likely to be lower again this year.
At current levels, crop insurance will not guarantee revenue sufficient to cover variable costs plus land rents. The relative levels of corn and soybean prices are similar to last year and do not appear to suggest a large shift in acres from last year. Continue reading →
While the majority of the drought attention has focused on the dire and lingering situation in California, drought conditions on the Plains have also been persistent and expanding. The most recent release of the U.S. Drought Monitor revealed an expansion of the drought conditions across the entire county. This got us wondering just how much of the U.S. winter wheat crop is currently affected by current dry conditions.