There is much consternation over the fact that global stocks-to-use in wheat is down to 12.5 percent and as a result, the price of the March SRW contract is up 65 percent. Yet the price on the December cotton contract is up 120 percent from its low.
Cotton is not essential for the food supply and the global stocks-to-use is over 70 percent, which is higher than it was just a few years ago. Instead, what is happening in the cotton market is politics. Major fashion retailers will not buy cotton from Xinjiang Province in China out of fear of a consumer backlash on behalf of the oppressed Uyghur people. China’s stocks-to-use for cotton is over 90 percent but purchasers have instead been waiting for a late harvested U.S. crop and where...
Free Trade to State Direction Conceptually, American farmers are huge winners under a free trade policy promising fair and equitable terms. As critics of President Trump’s trade wars will be quick to point out, “U.S. farmers have been some of the biggest beneficiaries of U.S...
Key Takeaways: Soyoil futures have been trading at the highest levels since 2022. Higher crude oil prices have allowed biofuels to be more cost-competitive with fossil fuels. Recent U.S. biofuel policy, including 45Z, has been favorable toward soyoil as a feedstock. California will be limiting...
There has been more analysis of the Trump-Xi meeting last week than decades worth of papers written on the fall of Rome and the assassination of JFK. Optimists highlight the pageantry and showmanship; pessimists complain nothing major was accomplished. The divergence of the official assessments...
