Government reserves now have reached 31 million tonnes, second only to China and three times the official target levels
Reuters / While most other major wheat growers around the world suffered from production setbacks in 2012 due to drought, India’s farmers had a banner year which has resulted in a glut of wheat supplies at state-run warehouses and export facilities. India’s state reserves of wheat have reached 31 million tonnes (34 million tons) —After a bumper harvest in 2012, India poised to be a new wheat export powerhouse
Drought repercussions will weigh on livestock sector for months to come
Low protein in soymeal and higher toxin levels in distillers grains add new challenges for pig, poultry and cattle feeders
Reuters / The repercussions of this year’s drought across the U.S. Midwest will likely continue to affect the livestock feeding industry for many months to come. Drought not only impacted the quantity of crops produced but also quality, leading to abnormally low protein content in soybeans and higher-than-usual toxin levels in corn that stand toU.S. meat producers may pare back output
Reuters / Despite nearly record-high feed prices, U.S. meat production has continued to trend higher in recent months, and the latest monthly statistics show that beef, pork and chicken output all remain above the five-year average. Brisk meat exports combined with strong domestic wholesale and retail prices have encouraged these high production levels, but a
Higher U.S. wheat plantings likely — and needed
Production problems haven’t left markets short yet but that could change if Australian growers continue to suffer from a lack of rainfall, which would set the stage for a wheat rally
Reuters / Stubbornly high prices have served to keep U.S. wheat out of contention on the export market in recent months, but a broad jump in winter wheat acreage coupled with growing overseas demand could change that picture. It’s no surprise that farmers in top hard red wheat states such as Kansas are upping theirHog outlook to get worse before it gets better
The recent slump in nearby hog values may only mark the beginning of a season of pain for pork producers. Already-high feed costs look set to keep climbing just as hog values enter their traditional seasonal soft patch, which may place hog production margins under even more pressure. To make matters worse, inventories of pork
Chinese buying could push soybeans over $20
The July-September quarter is traditionally a soft period for U.S. soybean exports as the world’s top buyers of the oilseed typically divert their buying interest to South American suppliers while the U.S. crop rounds out the growing season. But the shortage of supplies in Brazil and Argentina following this year’s drought in that region has
Rising barley demand promising for feed grain prices
Barley prices have proved to be an accurate leading indicator of what is to come in the corn and feed grain market
Reuters / Keep your eye on barley prices. Morocco’s recent removal of import duties on feed barley sets the stage for a scramble by other importer nations to cover their own barley needs in the weeks ahead. As a result, U.S. barley stocks can be expected to decline, and any steep cut in barley suppliesAfter a bright 2011, U.S. beef exports might wane
Foreign markets can display acute price sensitivity that could constrain demand 2011 was a banner year for U.S meat exporters, with beef, pork and poultry exports all hitting record levels on the back of dietary adjustments and increased affluence in overseas markets. But beef shipments petered out notably towards the end of the year just
Low-key corn futures belie active options
Corn futures may appear to be lacking conviction lately as both nearby and deferred contracts shuffle mainly sideways in low-key trade ahead of the upcoming U.S. Department of Agriculture production and stocks report due on Jan. 12. But judging by the steady climb in open interest in both put and call options in recent weeks,
Corn 2012 Output Under Threat From Rising Inputs
Convent ional wisdom holds U.S. farmers will boost corn production next year because of historically high prices, robust end-user demand, and low global inventories. But corn prices, off their highs by more than $1 a bushel, are now only 12 to 13 per cent above year-ago levels, and input costs are on average 25 per