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Producer Sentiment drops as crop prices weaken and production costs rise – Brownfield Ag News

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Producer Sentiment drops as crop prices weaken and production costs rise

Farmer sentiment declined for a second consecutive month, according to the Purdue/CME Group Ag Economy Barometer. The September index fell 9 points to a reading of 106.

Jim Mintert, director of Purdue’s Center for Commercial Agriculture, says producers expressed concerns about the current situation and future expectations. “High input cost, rising interest rates, and lower crop and livestock prices,” he says. “And you know you put all that together, I think what people are really worried about is a cost-price squeeze. We’ve been talking about that for a couple of months now, and that I think continues to be the number one issue for folks.”

The Current Conditions and Future Expectations Indices both declined 10 points to a reading of 98 and 109.

He tells Brownfield as producers finalize plans for the 2024 growing season, they should very closely evaluate the financial needs for their operations. “Think about the decisions they’re making with respect to production cost, thinking about their input purchases, thinking about which inputs they use,” he says.

Mintert says longer term, producers should also assess their working capital position. “As they think about making investments, be cautious about making those investments in terms of preserving working capital,” he says. “Because your best cushion against a downturn is you’re working capital and maintaining your positive cash balances.”

All three indices stand below their readings from one year ago.

The Ag Economy Barometer is a monthly national survey of 400 U.S. agricultural producers.

AUDIO: Jim Mintert, Purdue Center for Commercial Agriculture

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Author: Meghan Grebner

Global Dairy Index drops 4.3% – Brownfield Ag News

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Global Dairy Index drops 4.3%

Dairy prices were mostly down on the world market as Tuesday’s Global Dairy Trading index fell 4.3%, the second-largest drop in the index since February.

More than half of Tuesday’s trade was whole milk powder, which saw prices fall 8%. Cheddar cheese and skim milk powder saw prices fall by 1.4%. Butter and Anhydrous milk fat prices also fell less than 1%. Buttermilk powder was the only product with a price increase Tuesday, up 9.9%.

Anhydrous milk fat was down half of a percent to $4,705 per metric ton or $2.14 per pound.

Butter prices fell 0.7% to $4,680 per metric ton or $2.13 per pound.

Buttermilk powder was up 9.9% to $2,207 per metric ton or $1.00 per pound.

Cheddar cheese was down 1.4% to $3,910 per metric ton or $1.85 per pound.

Skim milk powder was down 1.4% to $2,454 per metric ton or $1.11 per pound.

Whole milk powder prices fell 8% to $2,864 per metric ton or $1.32 per pound.

Tuesday’s GDT trading event went 20 rounds with 124 winning bidders purchasing 32,613 metric tons of dairy products.

Tags: anhydrous milk fat, butter, buttermilk powder, Cheddar, GDT, GDT Index, Global Dairy Trade, lactose, skim milk powder, sweet whey powder, Whole Milk Powder

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Author: Larry Lee

Global Dairy Trade Index drops 3.3% Tuesday – Brownfield Ag News

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Global Dairy Trade Index drops 3.3% Tuesday

July 4, 2023 By Larry Lee Filed Under: Dairy, Dairy, News

The Global Dairy Trade Index fell 3.3% in Tuesday’s trading session. Prices for all products were down, but butter and buttermilk powder took the largest fall.

Buttermilk powder was down 11.4% to just $2,189 per metric ton, or $0.99 per pound.

Butter was down 10.3% selling for $4,842 a metric ton or $2.19 per pound.

Skim milk powder, which accounted for about 25% of Tuesday’s sales fell 6% to $2,525 per ton or $1.14 per pound.

Anhydrous milk fat prices fell 3.4% to $4,579 per ton or $2.07 per pound.

Cheddar cheese prices fell 3.1% to $4,386 per ton or $1.98 per pound.

About half of Tuesday’s sale volume was whole milk powder, which fell four-tenths of a percent to $3,149 per ton or $1.42 per pound.

Tuesday’s drop in the index is the second-largest of the year, behind the 4.7% fall on April 4^th.

Overall, 24,837 metric tons of dairy products were sold to 107 winning bidders in 14 rounds Tuesday.

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Author: Larry Lee

Soybeans soar, corn drops after acreage numbers – Brownfield Ag News

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Soybeans soar, corn drops after acreage numbers

Soybeans were sharply higher on speculative and technical buying, pulling contracts to a higher weekly finish. Farmers planted fewer than expected soybean acres this year and quarterly stocks were below pre-report estimates. Near-term crop weather looks mixed, with increased chances of rain in some areas, but with potential for severe storms. Soybean meal and soybean oil were up on the fundamental implications of a smaller than expected U.S. crop. It’s likely those acreage numbers will change further. China bought 132,000 tons of 2023/24 U.S. soybeans, the first announced purchase of U.S. beans since late January due to Brazil’s hold over the market.

Corn was sharply lower on fund and technical selling, adding to what would have already been a sharply lower weekly finish. The USDA says corn planted area was larger than expected, the third largest on record, at more than 94 million acres. Corn will go back to watching weather Monday ahead of the weekly crop progress and condition numbers, which a day off Tuesday, July 4^th. That canceled out any bullish influence from the quarterly stocks report. Corn is also monitoring second crop harvest activity in Brazil and the storage crunch caused by a record corn crop following a record soybean crop. Brazil’s government says it is buying 500,000 tons of corn to replenish state reserves.

The wheat complex was mixed, with the most active months at all three exchanges losing a lot of ground on the week. All wheat acreage was a little bit lower than expected, but up on the year, with increases for both spring and winter wheat. Winter wheat abandonment is projected at 30% of planted area, the highest since 1933. This likely means increased imports for flour millers and for feed use. The quality of the hard red winter crop is also a big concern. The trade is waiting to see what happens with the Black Sea Grain Initiative, with Moscow signaling, yet again, it is unlikely to extend that trade agreement with Ukraine.

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Author: John Perkins

Red meat production drops – Brownfield Ag News

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Red meat production drops

May 25, 2023 By John Perkins Filed Under: Animal Agriculture, Animal Protein, Beef, Cattle, Dairy, Livestock, Meat, News, Pork, USDA

Commercial red meat production fell sharply in April.

The USDA says the total of 4.2 billion pounds was down 8% on the year, including an 11% drop in beef production to 2.069 billion and a 4% decline in pork to 2.119 billion pounds.

Those decreases were due to tighter ready numbers limiting slaughter levels and lighter average weights. The cattle slaughter was 2.544 million head, 10% less than a year ago, with an average weight of 1,354 pounds, 19 lighter, while the hog slaughter was 9.77 million head, a decrease of 3%, with an average weight of 291 pounds, down 2.

The April 2023 dairy cow slaughter was 243,600 head, 62,600 lower than March, but 5,800 higher than April 2022. The year-to-date dairy cow slaughter is 1.114 million head, up 51,800 from this time last year.

The heifer and cow and sow slaughter numbers were below year ago levels, which could be a sign some operations are slowing down liquidation.

For 2023 to date, commercial red meat production is 18.141 billion pounds, 2% slower than the 2022 pace.

The USDA’s next set of annual meat production estimates is out June 9^th.

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Author: John Perkins