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Posts Tagged ‘soybeans’
Monday, October 3rd, 2011
Earlier this week, Michigan Governor Rick Snyder stopped in Shanghai as a part of a trade tour in the People’s Republic of China. Snyder’s visit is part of a three day trade delegation meeting designed to explore trade opportunities for China, the United States, and the state of Michigan. Accompanying Snyder is a team of government, university, and business officials.
Of particular importance for many Michiganders is the future of agricultural trade between Michigan and China. Top state officials say that if the trade talks go well that Michigan cherries, blueberries, cranberries, and other high value agricultural products could be heading to China. Michigan fruits were among the most demanded produce in the trade talks held so far.
In addition to fruits, many Michigan farmers are interested in the future of soybeans, a major crop in the state. As China develops economically, its standard of living has been rising. With the growth of the Chinese middle class come new dietary practices, including the consumption of more and more meat. As such, soybean producers in the U.S. have seen increased foreign demand for soybeans and other feed crops.
Currently the state’s 71$ billion agricultural sector exported over $50 million worth of agricultural goods, much of them going to Asia. While the trip is not necessarily concerned with forging specific trade deals, many politicians hope that strengthening the relationship between China and Michigan will lead to more lucrative deals in the future.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, Michigan, Rick Snyder, soybeans
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Thursday, August 25th, 2011
According to studies by both the Illinois Soybean Association and the National Bridge Index, Illinois roads and highways are facing record levels of disrepair. Roads, particularly rural roads, are the backbone of the agricultural sector. The ability to quickly and efficiently transport goods and products to and from markets often makes the difference between profitability and bankruptcy.
In Illinois in particular, rural roads are the keys to a successful agricultural industry. Over 70 percent of the state’s roads are rural. However, recent studies have demonstrated that this rural road network is badly obsolete and can no longer service the agricultural sector. These crumbling roads can halt farm traffic and add significant costs to farmers trying to ship their products.
Approximately fifteen percent of Illinois bridges are obsolete or in need of repair. 3,000 of Illinois’s 26,000 bridges are structurally deficient, meaning that they often cannot bear the weight of farm trucks and vehicles. The end result of these deficient roads is that farmers are forced to use elevators and take roundabout roads rather than more direct bridge crossings.
Nor is this transportation problem unique to Illinois. Across the country, infrastructure is obsolete and falling into disrepair, costing farmers significant amounts of money. In addition, damage to the agricultural sector can quickly reverberate on the larger job market, given the deep connections between a healthy farm sector and adequate local employment.
While American roads crumble, Congress is currently debating slashing $2 trillion from the federal budget, much of it potentially coming from the agricultural sector. As budget cuts combine with high fuel costs and a collapsing national infrastructure, farmers across the country can expect hard times ahead.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: illinois, roads, soybeans
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Sunday, March 27th, 2011
Corn acreage in the U.S. is estimated to be at record highs. The U.S. Department of Agriculture estimates that planted corn acres could be higher this year that any year since 1944. Despite these estimates, corn acreage and estimated yield might not be enough to stabilize corn prices.
Corn prices have risen over the last few years. Partly due to higher exports and party due to increased ethanol demand, farmers are storing less corn that eventually makes its way to American consumers. Domestic corn stocks have been halved since last May, dropping from over 1 billion bushels to just over 600 million. This level of domestic stocks is the lowest since the 1990s.
Shortages are in part due to foreign export. Corn exports to China have recently reached 15 year highs. Current estimates place Chinese corn imports at over 2 million tons. Added to these exports is an increasing demand for corn-based ethanol. Increased ethanol use and research continues to drain U.S. domestic corn stocks.
Finally, low yields and poor weather have convinced many farmers to plant soybeans and cotton, which tend to yield higher incomes. Record high soybean and cotton prices are playing a major role in the decline in needed acreage.
Domestic shortages all lead to higher food prices and will almost certainly intensify the debates over ethanol currently going on in the U.S. Senate. Senators from agricultural states, such as Iowa’s Chuck Grassley, have been pushing for ethanol tax credits for the upcoming Farm Bill, and corn shortages will most certainly take center stage in these debates.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: chuck grassley, corn acreage, soybeans
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Friday, February 18th, 2011
Soybeans are used in a variety of items to substitute important nutrients. U.S. soybeans are in high demand around the world, especially in China. The United States Department of Agriculture predicts the United States predicts the U.S. will export 1.596 billion bushels of the oilseed in 2011.
To meet the demands of the USDA’s prediction, the United States must export 10 million bushels a week. To date China confirmed a contract for 1.13 billion bushels in 2011.
“It’s real demand,” Al Kluis, trader, analyst and charter told The Prairie Star. “They have been buying from the U.S., and odds are they will continue to buy from the U.S. China is unloading inventories, stored and all, and still, prices have been higher. They have a tremendous need for corn, soybean and bean meal. They are not buying to speculate, they are buying to consume.”
In 2010 exports were higher than expected and experts believe this trend will continue. The USDA believes Argentina will become an important as heavy rainfalls continue to destroy crops across the country.
For more information contact Farm Plus Financial at 866-929-5585 or visit us online at www.farmplusfinancial.com.
Written by: Melissa Warner / Farm Plus Staff Writer
Tags: al kluis, china, prairie star, soybeans, usda
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Friday, July 16th, 2010
April has been a promising month for corn producers with near record numbers on the Chicago Trade Board, and all thanks to a large purchase from China. Soybean producers may be as lucky as harsh weather conditions threaten China’s farmers.
China purchased 120,000 metric tons of oilseed for delivery before September 1 according to the United States Department of Agriculture. The same report states that China ordered an additional 691,000 tons for delivery for the remainder of the year after that.
Bill Nelson, a senior economist for Doane Agricultural Services in St. Louis, said, “Another sale of soybeans to China is supporting the rally. The market is getting a bullish kick from the Chinese purchase of U.S. corn.”
A grain administrator in China added that stockpiles of grain and cooking oil need to be increased to help stabilize prices on the current market.
Farmers are planting extra acres of soybeans to meet the demand according to the USDA. Nelson added, “The fast pace of corn plantings is giving soybeans a boost.”
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Tags: china, exports, soybeans
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Thursday, February 25th, 2010
Soybean and corn producers watched as high prices took a quick dive to the deep end.
At the beginning of January 2010 producers were receiving an impressive $4.28 per bushel of corn and $10.68 for soybeans. However, the last day of January the Chicago Board of Trade reported a large dip in numbers. Corn fell to $3.57 a bushel and soybeans were at $9.14.
Producers who have these crops in storage can expect to wait until summer for prices to increase.
Not everyone is suffering from the dip. Livestock producers can breathe a sigh of relief because this means that feed prices have dropped.
Farm loan rates starting at 2.99%. Lock in before farm loan rates rise. Contact Farm Plus by clicking here or calling toll free 866-929-5585.
Tags: commodities, corn, soybeans
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Tuesday, December 8th, 2009
Although soybeans are the most desired crop in the U.S. this season, they are at their lowest price this month and most of it is thanks to favorable weather this summer.
Nebraska is the fifth-biggest soybean-producer and found that pod counts are up 9.1 percent from last year. Experts say the crop is “unbelievable” and the weather is to thank.
Prices for soybeans dropped to its lowest of $9.405, its lowest since July 30. However, it made a recovery to $9.58 a bundle.
Soybeans are the second-biggest crop bringing in $27.4 billion annually. Act now to join the booming industry.
Need a low-rate farm loan to help give your business a boost? Contact Farm Plus today! Call 866-929-5585 to speak with a representative or visit our website for more information.
Tags: crop, nebraska, soybeans
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