On a regular basis, our staff is called upon to provide the media with
information concerning the markets, strategy, and advice that is helpful to
their readers. Sort through these archived pieces to capture
information that can be helpful in your management decisions.
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U.S. Ag Exports Still Look Strong
Telegraph Herald (February 28, 2012)
Projections call for another good year for cash grain agriculture, although it
might not match 2011. At the federal Department of Agricultural Outlook Forum on
Thursday, the department's chief economist Joseph Glauber made his predictions.
"Despite slower growth, 2012 should be another good year for U.S. agricultural
exports," he said, because a cheaper dollar should more than compensate for
slowing global economic growth. At Monday's First Capitol Ag's 2012 Grain
Marketing Conference in Dubuque, that was the prevailing mood. However, Mike
North, a First Capitol senior risk management adviser, cautioned that it's often
tough to predict the growing season in late February. North was a featured
speaker at the conference held at the Hotel Julien.
Read more...
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Avoiding a Vicious Cycle
Semex: Balance (Winter 2012)
For every market there is a chart. The chart defines that market's price over
time. However, what makes up a price? What influences its movements? Some will
say supply and demand. Others will contest that we are in a new era, where
algorithmic trading and computer generated order flow dictate price. Some will
mention the volatility propagated from the war between fundamentalists and
technicians has an influence.
Read more...
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Analysts Expect Corn Supply Cuts, Lower S. American Crops
www.cattlenetwork.com (January 9, 2012)
"The question mark at this point is how the USDA approaches recent dry weather
in South America and its impact on corn and soybean production," North said.
"Those estimates will temper much of the discussion concerning direction of
balance sheets going into the spring planting season in the U.S."
Read more...
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Caught in the Crossfire
www.progressivedairy.com (December 29, 2011)
It is a classic Hollywood scene. A soldier is caught in crossfire, trying to
determine the best way out of his predicament. The soldier knows that sitting
idle will be the death of him if he does not identify a way out. It appears that
all angles present some degree of risk, but one must be chosen.
Read more...
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Why all the "buzz" about dairy margins?
Hoard's Dairyman (June, 2011)
Here's dairy net margin defined: the result of all dairy revenue minus all dairy
expenses . . . not solely the difference between milk price and feed cost. Over
the past several months, you probably have received a steady diet of
presentations, magazine articles, and discussions focusing on dairy margins.
Read more...
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It's like deja vu all over again!
www.progressivedairy.com (June 7, 2011)
There are many theories as to why milk prices have gone higher since the lows
of 2009. Some will argue that the CWT cow kills removed enough production
capacity so as to shorten the available milk supply for processors, thus
raising their effective bid. Others will make a case for growing export demand
and the broad sweeping interest that foreign buyers have for our products. Some
will bring up the crippling weather conditions experienced throughout the
Oceania region that shortened their feed availability and ultimately their milk
supply.
Read more...
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Market Watch: Increase In Corn Acreage Predicted
www.progressivedairy.com (March 22, 2011)
One of the single greatest discussions in recent weeks has been that of acreage.
Will corn producers plant enough corn to meet current demand? Will cotton prices
rob corn of acreage in the south? Will South American soybeans rebuild enough
supply to allow U.S. production a timeout in its pursuit to keep pace with corn
growth? Recent reports from South American harvest suggest record yields are
coming our way, though it is too early to make that prediction for the whole of
the continent when only a few producers in the north are harvesting. Some of
those questions were addressed at the USDA Ag Outlook Forum held in late
February.
Read more...
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Buy Low, Sell High
www.progressivedairy.com (July 29, 2009)
There is an old saying in the trading world that many people have heard before.
"Buy low, sell high!" The premise, of course, is that you take home the middle,
the margin, the change or however you care to refer to it. Running a business
operates much on the same concept, whereby we work to add value to a cheaply
bought input and sell the finished product at a much higher value.
Read more...
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The Crude Reality Of The Milk Market
www.progressivedairy.com (February 5, 2009)
What an interesting time; a time where people no longer brag about the look of
their car or its speed, but rather its mpg rating; a time when homeowners go to
lengths to build energy-efficient homes; a time when "alternative energy" became
a household phrase. This is a time when the consequence of people's actions is
measured in barrels and gallons.
Read more...
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Seat Belts on Roller Coasters
www.progressivedairy.com (September 25, 2008)
If there is one thing that catches my daughters' attention when we head to the
fair, it is the rides. The constant commotion of screaming riders, flashing
lights and the thrill of watching machines thrash back and forth, round and
round, and up and down has them begging to go for a ride. One of their favorite
rides is the mini roller coaster. They spend their time looking for Mom and Dad
as they smile and wave from the vantage point of their steel cocoon.
Read more...
