Crop prices have been moving sharply higher over the past several weeks due to a number of different factors. #-ad_banner-#In the U.S., a particularly cold spring has featured freezing temperatures and snowfall well into the prime planting time for Midwestern farmers. A delay in planting means that it will take longer for crops to mature — with the potential for supply disruptions in the works. While the Midwest is dealing with cold and snow, farmers in California are facing one of the most severe droughts seen in decades. Low levels of rainfall have left reservoirs well below normal levels and… Read More
Crop prices have been moving sharply higher over the past several weeks due to a number of different factors. #-ad_banner-#In the U.S., a particularly cold spring has featured freezing temperatures and snowfall well into the prime planting time for Midwestern farmers. A delay in planting means that it will take longer for crops to mature — with the potential for supply disruptions in the works. While the Midwest is dealing with cold and snow, farmers in California are facing one of the most severe droughts seen in decades. Low levels of rainfall have left reservoirs well below normal levels and have made it increasingly difficult for farmers to irrigate crops. Expectations for the next few months continue to be bleak for California and other areas of the southwestern United States. This could pressure crop output and result in shortages and agriculture price spikes. Internationally, political tensions are also causing fear of supply disruption. For instance, Ukraine was expected to be the third-largest corn shipper this year, but that’s in doubt with Russian troops on the country’s border. Military action could have a destabilizing effect on the entire region, and disrupt supplies of grains that were previously expected to… Read More