GLG News by Agricultural Economics Experts (US)

Facts provide insight into how much corn must be produced in the long run. Knowing the facts provides a better understanding of how many acres, fertilizer demand and seed technology is required.

Despite increasing world grain and oilseed production, demand continues to strain inventory for corn and world vegoils.

The effects of late planting, cool-wet soils in May, and flooding in June can't be overcome by favorable weather in July and August.  USDA's yield and production estimates may well turn out to be on the optimistic side when we finally get the crop in the bin.

The request for a partial waiver in the RFS by Texas Gov. Perry is likely to be denied, largely due to a 25% reduction in corn prices caused by favorable weather in the Midwest.  This corn crop, however, will be extremely difficult to get an accurate estimate on prior to getting it out of the field,...

Changes in the ethanol production subsidy and import tariff would be an excellent way to moderate the increases in the short-term price of corn, easing the pain for the US livestock industry.  But any change in these policies will have long term impacts on the biofuels sector.   These changes...

Less than normal quarterly use of wheat builds US ending stocks however record quarterly use of US soybean and corn is expected to continue to keep at the knifes edge.

An over-emphasis on ethanol has combined with a poor production year and a major speculative push on commodity prices to push livestock net returns into the red.  Animal feed has long been US corn and soybeans primary source of demand, but high feed costs, with no way to push up the selling price...

Just like this time last year, traders in Chicago may believe that Brazilian farmers are poised to significantly expand soybean acreage, as they have moved prices above $15 per bushel.  However, just as they misjudged them last year, they may be doing it again, as fertilizer prices have doubled,...

Expiring contracts may add two million acres a year to planted area in the US, but don't look for many contracts to be "broken" unless they were recently signed, as the penalty's are too severe, even with high commodity prices. It seems likely that given the current situation with a poor crop in the...

It is a win-win marriage made in Brazil. The timing is perfect to take advantage of record stock prices and commodity prices, though wet corn milling might have some problems next year.