Gulf Terminals Showing Signs of Recovery
The USDA reported that about 7.9 million bushels of corn and 5.5 million bushels of soybeans were inspected last week along the Louisiana Gulf Coast.
The week prior showed none.
Still, inspections were about 48% lower for corn and 80% for soybeans versus one year ago.
About 60 bulk vessels were lined up along the lower Mississippi earlier this week waiting to dock and load grain.
Loadings and exports should continue to pick up and return to normal in the coming weeks.
Fertilizer Prices Climb
Bloomberg reported that urea and DAP have reached levels not seen for about a decade.
Reasons for the sharp spike include the storms that struck the Gulf this summer, shuttering plants and preventing shipments.
Natural gas and coal prices have also risen, curtailing ammonia production in Europe and urea production in China.
Fertilizer prices have helped exacerbate global food prices.
Farmers are weighing options, including changing planting plans and limiting fertilizer use.
FBN’s Take On What It Means: To help blunt the effects of the recent fertilizer inflation, farmers are considering cutting application rates, switching acreage from higher-input crops (e.g. corn) to lower-input ones (e.g. soybeans), and even delaying purchases in hopes of lower prices later. Any of these options could dramatically alter yield and acreage projections for next year’s crop, especially corn.
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