1. Overnight trading records wheat at fresh 13-year highs
Wheat futures reached a 13-year high after Russian attacks on Ukraine intensified.
Russia continued to bomb Kharkiv (Ukraine’s second-largest city) and Kyiv, resulting into dozens of deaths.
Traders are realizing the war between Russia and China will last for a while. Even if it ends sooner than expected, there will still be buyers for Russian wheat, AgResource analysts wrote in a note to clients Tuesday, according to The Wall Street Journal.
Grain ports in Ukraine have been closed, and Russian wheat seems to be a pariah at the moment. This could lead to potential shortages on international markets. Buyers will need to look for other suppliers, such as Argentina, Australia and the U.S.
Russia is the largest exporter of wheat in the world, while Ukraine is the third-largest shipper. According to the Department of Agriculture (Dominican Republic), Australia is the second-largest wheat exporter and the U.S. is fourth.
As the Brazil harvest rolls on, soybeans were lower in overnight trade.
Consultancy AgRural reported this week that 44% harvest was complete, up from 33% a few weeks earlier and 25% at the same time in 2021.
Quality is a problem in some areas, but dry weather this month should help with the harvest in south Brazil, Commodity Weather Group stated.
CWG informed clients that Argentina is likely to experience a drier trend over the next 10 days. However, stress on soybeans and corn will likely be “very limited” until mid-March.
Wheat for May delivery jumped 55¢ to $10.39 a bushel overnight on the Chicago Board of Trade, while Kansas City futures were up 55 3/4¢ to $10.58 ¾ a bushel.
Corn futures for May delivery gained 1/4¢ to $7.26 a bushel.
Soybean futures for May delivery dropped 12¢ to $16.78 a bushel. Soymeal was down $3.30 to $451 a short ton and soybean oil futures fell 0.62¢ to 75.59¢ a pound.
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2. Fed’s Barkin says that rural infrastructure can be improved in many ways
In rural America, infrastructure can be improved in many ways, not just physically, Richmond Fed President Tom Barkin stated in a speech yesterday.
Physical-infrastructure growth is important, he said, but community and business leaders in rural areas also need to focus on workforce, early care and education and housing.
Barkin stated, “Unfortunately community college enrollment has been slowly declining for years and the pandemic only exacerbated this declines, especially for students who are of color.” “I fear that a generation is passing on the chance to build their skills.”
All of these topics will be covered by the Richmond Fed at its Investing In Rural America Conference, March 30, in Greensboro (N.C.).
The pandemic demonstrated how important it was for parents to be involved in the workforce. He stated that early child care is crucial for a child’s development. However, opening a center for child-care can prove prohibitively costly.
Nearly 60% of rural areas live in what’s known as a “child care desert”, where parents don’t have many options, if any, to support their children.
Barkin stated that the “challenging cost structure” makes it difficult for many areas of the country to establish and maintain child-care facilities.
Housing is a problem in the United States right now. However, it can be very difficult to find affordable homes in rural areas.
He said that there is a shortage of older houses, and less multi-family options like apartments or condominiums. Also, construction costs are rising.
Barkin said that employers can use this information to influence their location decisions as they won’t be able to hire the right workforce.
He said that one topic will be addressed at the Investing for Rural America Conference: How to encourage entrepreneurs and small-business owners in rural areas.
Solo-proprietors and other small businesses tend to have higher job growth and better economic health.
Barkin stated, “Prior the pandemic, startup rate (for small business) had been declining for decades. But we’ve seen an encouraging burst in startup activity lately.” “I believe that communities will be able take advantage of this moment and help build thriving entrepreneurial networks.”
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3. Winter-Weather Alerts Issued in Parts Montana, North Dakota
According to the National Weather Service, winter-weather advisories are in place for parts of Montana as well as North Dakota this morning.
The NWS reported this morning that the freezing drizzle will continue throughout the morning, causing slippery roads and dangerous driving conditions.
“Mixed precipitation with light snow overnight has created light glaze of ice,” said the agency.
The advisories remain in force until 9 a.m. central.
In northwest Missouri, dry conditions have created a “very high fire danger” According to the NWS, winds will reach speeds of up to 25 mph today and relative humidity will drop to around 10%.
In the southern Plains, wind gusts will come just under 30 miles an hour this afternoon while relative humidity will range from 5% to 10%, creating tinderbox-like conditions.
Source: Successful Farming
