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.
Excitement about sorghum has continued to grow. China’s appetite for the crop, which is often used for animal feed, has been driving demand and excitement for the crop that had otherwise been in a downward trend. While our earlier posts looked at production and yield trends, continued media attention on sorghum has again fueled our curiosity to further understand the renewed enthusiasm. For this post we looked at the emergence of a sorghum premium and where any expansion in acres may take place.