Grain markets had another wild ride in July.
As you probably already know, July began with the introduction of tariffs on American and Chinese products, including many agricultural commodities. This was after grain prices dropped dramatically in June 2018 as grain markets priced in these new trade hurdles.
Put simply, the “Trade War” between Beijing and Washington has rocked the grain markets, as traders faced uncertain risks and consequently took profits off the table.
Another critical factor this month was the weather. While we typically see some weather-related price rallies around this time of year, weather volatility has challenged global production estimates.
The extreme dryness and hot temperatures across major growing regions of Australia, Europe, North America, and the Black Sea Region have resulted in downgraded production expectations for a variety of crops. It’s been so hot this year that there have been wildfires reported in the Arctic Circle!
With new trade talks between China, Trump, the EU, and NAFTA partner countries announced almost daily; it’s more important than ever to stay on top of the factors affecting grain prices.
While the trade war consumed most of the attention in Chicago, Kansas, and Minneapolis this month, we continued to cover all the significant factors affecting markets on the FarmLead Marketplace.
In July 2018, for our GrainCents readers, we published 81 individual reports on the 12 crops that we cover: corn, canola, soybeans, flax, durum, spring wheat, winter wheat, barley, oats, peas, chickpeas, and lentils.
These reports range from the latest updates on Trade War talk, crop quality and condition reports, changing global production estimates, and the various macroeconomic factors affecting the price of grains that are a part of your operation. GrainCents subscribers also receive cash grain sales recommendations (which have a 93% accuracy rate!)
One of this month’s articles posted on the FarmLead Insights page that was very timely was our call on the weather being the only potentially bullish factor left for grain markets, especially for corn prices.
This sort of analysis and proactive risk management is what we focus on here at FarmLead. If you’re like many other farmers and agribusinesses who are having a tough time wading through the noise of today’s grain markets, then I strongly encourage you to sign up for a no-risk, free trial of GrainCents today. Make sense of the grain markets so you can make more cents per bushel.
Apart from GrainCents, FarmLead has many tools that can help your farm and/or agribusiness when it comes to grain markets:
– Check out Grain Marketing University to discover how to connect your farm’s production to your profits.
– GrainTests.com is a simple tool to proactively order, pay, and receive quality assessments done on your grain from hundreds of independent labs across North America.
Finally, we encourage you to explore all your options for cash grain trade on the FarmLead Marketplace: Post your own offer – be it negotiable, a firm target price, or a no-price offer – and let our network of more than 10,000 farmers and credit-verified buyers come to you!
As we head into Harvest 2018, from the team here at FarmLead, we’d like to wish you a safe and productive harvest!
President | CEO