08/26/2015Broiler Economics: Ups and Downs of the Grain Market, Aug. 2015
Following the publication of the USDA Grain Stocks report on June 30th, corn and soybean prices spiked upward. The report showed that corn and soybeans were being depleted faster than had been expected. In addition, there were supply concerns due to excessive rain in the eastern Corn Belt.
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06/18/2015Broiler Economics: Bear Market for Grain, June 2015
Barring a drought, low grain and oilseed prices are likely to last through next crop year. This is a substantial bear market in grain. Nevertheless, it is important to remember that, while no one can predict the exact end of a down cycle, the downside risks are now diminished while the upside risks will increase over time.
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04/20/2015Broiler Economics: Grain Supplies Still Abundant, Apr. 2015
The supply of grains and oilseeds vital to the poultry industry are currently abundant and prices continue to fall. Barring a drought, low prices are likely to last at least for a considerable amount of time.
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02/26/2015Broiler Economics: Grain Prices Low and Stable for the Moment, Feb. 2015
In a similar fashion to the price of oil, it took a few years of rising world production to knock grain prices from unusually high levels and bring them down to earth. It has finally happened, both corn and soybean meal (and crude oil as well) are down from the clouds and appear to be stable at much lower levels, at least for this year. Barring an important drought this year in the US, grain prices should remain low through the entire year, and barring political problems, crude oil should remain low as well.
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