Crop Report

Crop Report

David Sparks Ph.D.
David Sparks Ph.D.
Producers in February overall received more for the price of their commodities, according to USDA’s latest agricultural prices report. The almost 2 percent month over month rise and the overall prices received index comes from a 4.4 percent increase in the crop production sector. The over 3 percent increase fruit and tree nut growers received pricewise, offset decreases in indexes for other commodities, such as vegetables and melons. Feed grain growers saw no change in prices received from the previous month, and producers of wheat and other food grains noted a slight increase price-wise. The livestock price index for February dropped 3.7 percent. With all indexes livestock, dairy and poultry and egg, showing month over month price declines. Producers also paid slightly less for their inputs and services in February due to lower prices for feeder cattle and pigs, diesel and supplements.

The second highest possible planted acreage for corn since 1937, 97 million acres. That's what USDA prospective plantings report says producers intend to plant this season. But USDA chief economist Rob Johanson says the producers survey was done basically in late February, into mid March. Things may have changed for corn demand as covid 19 and other problems have cut down a lot on ethanol production.

Johannsen told us “just in general, gasoline demand is going to be down in 2020. There will be less interstate commerce, but also much less travel by Americans this year. That will diminish their demand for motor fuels. And so as with gasoline demand, so does ethanol demand decline. About 40 percent of the U.S. corn crop normally goes into ethanol. That, again, is in a so-called normal year.

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