GLG News by Agricultural Economists

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.

Ethanol was---and is---designed as an additive for gasoline for motor fuel use.  To suggest that its use in lawnmowers and leaf blowers is threatening the future of ethanol as a motor fuel is disingenuous at best.

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...

Brazil has made requests directly to President Bush (on his trip to Brazil last year) to remove the tariff.  Won't happen.  Of the 177 US ethanol plants now operating or nearing completion, the vast majority are farmer coop owned.  The high price of corn (inputs) makes the crush spread...

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,...