Last Week’s Moves
Corn 569-6 (+2.75%) | Soybeans 1335-2 (+2.14%) | SRW Wheat 606-6 (+0.29%)
KC Wheat 818-4 (-0.64%) | Live Cattle 162.875 (-0.87%) | Lean Hogs 82.775 (-0.48%)
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Welcome to your weekly agriculture report, where we cover everything you’ll need to know for the week ahead. This week, the Southern Plains are bracing for severe weather, USDA announces farmers and ranchers will receive $3.7 billion in aid in the coming months, and Kansas is experiencing the toll of drought.
Severe Storms Loom Over Southern Plains as NWS Warns of Hail and Damaging Winds
The National Weather Service has issued a warning for the Southern Plains as storms are expected to develop, with the potential for some to turn severe. The NWS has alerted residents to be prepared for large hail and damaging winds associated with this storm system. The NWS highlighted the concern of slow storm motion, which could lead to localized flash flooding, especially in areas that have already experienced significant rainfall from recent weather events.
- Stormy week ahead… The residents of the Plains states have been told these storms will persist throughout the week, emphasizing the need for ongoing vigilance and preparedness.
- Flooding with hope… This is intimidating news for the already flooded parts of Eastern Iowa and Northern Illinois, along the Mississippi River, but good news could be on the way…The river at Burlington, Iowa, is expected to drop below flood stage of 15 feet on Thursday and be at around 14.2 feet by Sunday.
USDA Responds to Mother Nature’s Wrath
USDA Agriculture Secretary Tom Vilsack announced that farmers and ranchers impacted by a range of natural disasters in 2022, including droughts, hurricanes, and wildfires, will be granted $3.7 billion in aid over the upcoming months.
- Balancing Act… Vilsack says $3.7 billion in aid falls short of the estimated losses. As a result, the USDA will implement payment factors to ensure fair distribution of funds. Specifically, lawmakers have allocated $500 million from the aid package to support livestock producers who have been impacted by drought or wildfires last year.
- White knight… In response to the escalating costs faced by organic dairy producers, the USDA has unveiled assistance programs aimed at providing support. These initiatives are designed to help alleviate the financial burden on organic dairy farmers, enabling them to better manage the increased expenses they are encountering.
Mother nature strikes again…Kansas farmers are being forced to abandon their wheat fields due to severe drought conditions. The lack of rainfall has resulted in parched and unproductive fields, leaving farmers with no choice but to give up on their wheat crops.
- A perfect storm… Kansas wheat farmers are anticipating the worst wheat crop in six decades due to unfavorable weather conditions and other challenges. The combination of severe drought, late-season freeze events, and pest infestations has severely impacted wheat production.
- Looking scarce… Anticipated statewide wheat production in Kansas for this year is expected to reach a mere 178 million bushels, significantly below the average yield. The USDA Economic Research Service had previously projected 191.4 million bushels. These figures mark a significant decline from the 244 million bushels harvested in 2022 and the 364 million bushels in 2021.
- Historic lows… If the USDA projections hold, the 2023 wheat crop would be the first in over six decades to yield less than 200 million bushels, making it the worst harvest since 1957.
What else you need to know…
- Navigating the fog… The outlook for Ukrainian agricultural exports in the upcoming marketing year looks uncertain. There are several factors that contribute to the hazy prospects, including global economic conditions, geopolitical tensions, and fluctuating commodity prices.
- Sizzling concern… Enforcing Proposition 12 has potential negative impacts on the pork industry, affecting pig farmers, consumers, and animal health. Proposition 12 has raised concerns among industry stakeholders due to its potential to increase costs for pig farmers, limit market access, and create challenges for animal health and welfare.
- New heights… Corn export inspections have risen by a notable percentage, indicating a surge in the demand for U.S. corn in international markets. There are multiple factors contributing to this growth, including strong global demand, competitive pricing, and favorable weather conditions impacting crop quality.
- Bargain bonanza… Bargain-buying is providing support to U.S. corn, soybean, and wheat futures. Despite recent declines in prices, investors and traders are taking advantage of the lower values to make bargain purchases, which are helping to stabilize and uplift the futures market.
That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.
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