On the morning I am writing this, while I ate my cereal, I scrolled through our President’s Twitter feed. The ongoing trade tensions with China are top of mind for everyone in agriculture. And unfortunately, the tensions add a great deal of uncertainty to an already rocky growing season.
In mid-May, J.P. Morgan analyst Ann Duignan sent a note to investors saying the fundamentals of agriculture are “rapidly deteriorating.” Duignan says three factors are driving her observation: declining exports, a poor crop of corn and soybeans and the trade war with China.
What does this mean for ag retailers? Throughout May, the top trending stories on AgProfessional.com were about the slow-starting planting season and trade with China. And when our next magazine issue hits your mailbox, your customers will be closing in on the final days to make a prevent plant decision. With spring insurance prices of $4 for corn and $9.54 for soybeans, Jamie Wasemiller with the Gulke Group says, along with the bearish nature of futures prices moving forward, the premiums provided by prevent plant could be close to or even higher than profits from producing a crop on those acres.
Our team has been helping you keep up with the news on trade with China, planting progress, and more. Be sure to check AgProfessional.com, as our leading ag news team continues to bring you the best analysis and important details affecting your customers and your business.
And while you’re on the website, click “Newsletters” at the top of the page to sign up for our newly launched AgPro Daily e-newsletter, which every weekday brings subscribers the top five trending stories.