Wednesday, May 29, 2019

Agricultural Futures: Wow

We'll start with a random act of prophecy from April 2018:
"Is $8 Corn A Possibility?"
Though the odds for it happening are probably better in 2019 or 2020 but it could happen this year. We saw such prints in both 2011 and 2012;  2008 got close.....
Yesterday's USDA report threw a bit of gasoline on already  hot markets:
Crop Progress Report, May 28, 2019: Soybeans Not Getting Planted, Corn 32 Points Behind Averag

And the action:

Corn up 16.50 (+3.83%) at 436.75

Wheat up 15.00 (2.97%) at 519.75

Soybeans up 33.00 (3.86%) at 889.00

One more random act of prophesy, from May 7:

One of the Scariest Sentences In the English Language: Crop Progress Report Edition
The weekly crop progress report was released yesterday but first a quick diversion:
In the spring of 1315, unusually heavy rain began in much of Europe. 
The story continues:
Throughout the spring and summer, it continued to rain and the temperature remained cool. These conditions caused widespread crop failures. The straw and hay for the animals could not be cured and there was no fodder for the livestock. The price of food began to rise. Food prices in England doubled between spring and midsummer. Salt, the only way to cure and preserve meat, was difficult to obtain because it could not be evaporated in the wet weather; it went from 30 shillings to 40 shillings. 

They don't teach enough history these days.

Cold and wet is very bad. Keep an eye peeled for folks tripping on ergot in the rye for that full-on medieval experience.
If interested see also yesterday's "Grains and Soybeans Jumping Higher".