Posted on November 26, 2019
If China agreed to purchase “$40 to $50 billion” of U.S. farm goods in “the next two years,” as President Donald J. Trump announced Oct. 11, the futures market—where market reality is quickly sorted from political talk—literally wasn’t buying it.
In fact, November soybean futures, the nearby contract, opened Monday, Oct. 14 at $9.405 per bu. and […]
Posted on September 21, 2016
As the food industry continues to consolidate into fewer, bigger players, the price risk it once hedged in Chicago and New York futures markets is being pushed back onto the very farmers and ranchers it buys from.
The reason is simple: the Big Boys have the market power to do it.
After decades of Big Ag’s talk […]
Posted on May 1, 2016
March did not go out like either a lion or a lamb. In fact, after the U.S. Department of Agriculture released its Prospective Plantings Report midday March 31, the month—as well as the 2016 corn market—highballed it into history faster than a runaway train.
The coal was USDA’s forecast that farmers intend to plant 93.6 million […]
Posted on April 20, 2016
There is a certain poetry in Sen. Pat Roberts’, R-KS, failure to convince the U.S. Senate to squash state and local food labeling laws. His proposed fix, fail though it did, may have done more to boost consumer faith in the market than anything Congress has or hasn’t done in years.
Roberts’ winning loss began with […]
Posted on February 3, 2016
The fireworks-filled, holiday celebration that is the Chinese New Year doesn’t begin until Feb. 8. Three weeks into calendar year 2016, however, key elements in China’s economy—its wildly speculative stock markets, less-than-transparent currency, sagging heavy industries—have gone boom.
That weakness is already being felt in U.S. farm and ranch country. Rural America, after all, is China’s […]
Posted on August 4, 2015
It’s an almost poetic coincidence that the day after Greek voters loudly told European technocrats in Brussels and German bankers in Berlin to stuff it, the futures trading CME Group quietly moved its last, open-outcry commodity trading pit from Chicago’s Loop to the perfectly technocratic, globally homeless electronic market.
The Greek “No!” vote, like the Greek-European […]
Posted on August 4, 2015
On the mid-1970s, southern Illinois dairy farm of my youth, we viewed Monsanto Co.’s new, systemic weed killer, Roundup, as a miracle cure to our biggest perennial headache, Johnson grass, the hard-to-kill weed still listed as one of the 10 worst weeds in U.S. agriculture.
The new herbicide wasn’t cheap–$70 per gallon, if memory serves—but it […]