Farmers mostly want to grow what is easy and profitable. Excluding government payments, all the major crops have turned negative for U.S. farmers in terms of net value of production after expenses (see graph below). Productivity works to drive down the gross value of crops, but growing what the market demands is also important.
Understanding what the world wants and is willing to compensate can be challenging to calculate. Following are key results for six major global crops analyzed during 2011-2020:
Soybeans have had the largest increase in use (thank you, China), and the biggest boost in yield gains but also the second-greatest increase in ending stocks. Corn has also had impressive increases in use as it compliments soymeal in th...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
