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28th of March, USDA released their annual prospective plantings report for the coming year. They are reporting a decrease of 5 percent in corn planted acreage from 2023. USDA estimates that the planted area for corn for all purposes in 2024 will be at 90 million acres. This is 4.61 million less than last year. In terms of wheat, the planted acreage is reported to be down by 4 percent. The planted area for all wheat types is estimated at 47.5 million acres for 2024. More specifically, winter wheat is set at 34.1 million acres. Where 24.3 million of these are Hard Red Winter, and 6.26 million acres are Soft Red Winter. The remaining 3.59 million acres are White Winter Wheat. Spring wheat is estimated to be 11.3 million acres for 2024, where 10.7 million acres are Hard Red Spring. Durum wheat is expected at 2.03 million acres. As an immediate response to the publication of the prospective plantings report, corn prices saw a surge on March 28th. The US being the world’s largest corn produ...

  Last time we finished in Australia, this is where we will begin today. Earlier this week the GPA (Grain Producers Australia) called for increased research on red imported fire ants (RIFA). This happens after several discoveries, both last year and earlier in January, indicating a spread of the pest. Worry and concern grows within the grains industry of the potential impacts of RIFA. There are however studies within this field already, but these are from the US and focus on soybean crops, which is not a major grown crop in Australia.  We continue north to China where they have canceled and postponed wheat delivery from the U.S and Australia, from Q1-Q3. They have also agreed to pay penalties in the form of carrying costs, Reuter states. By doing this, possibilities for other buyers to get Australian wheat without having to wait has opened, according to a Dubai based wheat-trader. China's decision to cancel or delay cargoes is a major contributor to the decline in global p...

Monday the 26th of February saw US corn futures dropping to a 3-year low , the March contract falling below $4 per bushel. This is mainly due to a strong US supply and export competitors in South America expecting a strong harvest.  The sharp price decline follows a record crop yield by U.S. farmers last year. Farmers put off sales in fear of failed crops. The crops were instead successful, resulting in record-high amounts of corn in silos. This has caused the futures prices to tumble from their June 2023 peak of $6.30 per bushel. Us farmers still have a lot in storage from the 2023 harvest, and say they regret not having booked more sales . According to a January report written by economists at the University of Illinois , farmers in Southern Illinois could lose up to $160 an acre growing corn this year. In contrast, profits reached about $340 an acre two years ago.  The US corn futures were on the mend this week, however, perhaps because of the increase in short positions. ...

                                                    Wednesday this week, the USDA published their annual agricultural projections report , going all the way to 2033. After historically high prices in recent years, the USDA now projects crop prices to decline or remain stable at lower levels in the years 2024-2030. Wheat prices are expected to drop from $7.30 per bushel in 2023/24 to $6.80 in the first year of the projection period, to then stabilize at $6.00 per bushel throughout the period. The USDA bases their projection on US and international agricultural policies, export and import levels, current crop yields, biofuels assumptions, and macroeconomic assumptions. They for example assume current US and international agricultural policies and trade agreements will remain in effect until 2033. Western economic sanctions towards Russ...