As we pointed out in an earlier article, the economic situation surrounding wheat production is particularly tenuous. Today wheat prices are very low and the economics of producing wheat are particularly poor. In some areas of the Great Plains cash wheat prices are within cents per bushel of cash corn prices. For instance, you can see the Kansas bids here, Nebraska here. This situation made us wonder about wheat price levels and the value of wheat relative to corn has evolved over time. Continue reading →
While most of the 2014 corn crop is still in the field, planning for the 2015 crop is underway. Long before the combines start fall harvest, the importance of the 2015 budget will begin to come into focus.
The big story in 2015 will be lower commodity prices, especially for corn and soybeans. The question on many producer’s minds is how much, if any, relief might come from lower input prices?
A look at 13 years of historic Purdue Crop budgets reveals an interesting trend in corn seed expenses.
A previous post looked at the USDA baseline for corn prices and pointed out that the baseline did not quickly capture the dramatic shifts in supply and demand that were occurring in the corn market. We shouldn’t be too critical of the USDA (and keep in mind the baseline is not really a forecast but a projection of current conditions into the future). The USDA was not the only group that failed to forecast the dramatic rise in commodity prices. Continue reading →