5/5/2023

Grain markets getting back about half of the recent drop off over the last few days. A couple of weeks ago a storm system started moving in over Kansas and dropped up to 2” in parts of the drier areas and I think that was the major reason for the selloff combined with the US being overpriced vs. the world market. I would guess that the market has started to realize that a lot of that rain was too late to benefit much of the KS crop. From April 14^th to May 2^nd the KC market dropped $1.35/bu. Since then, we’ve rallied back $0.82/bu. 

The Oklahoma Grain and Feed issued their estimate for OK wheat production this year at 54 million bushels, which would be down 20% from last year’s 68.6 million bushel crop. Some estimates are running closer to 45m bu with more freeze damage seen. If realized, this would be the smallest crop since 2014 where we saw production of 47.6m bu and will likely see production estimates in KS continue to drift lower with similar freeze damage being reported. The recent rainfall and additional showers expected over the coming weeks will result in more wheat plowed under with fall crops being planted.

The Federal Reserve added another quarter-point interest rate hike this week as it continues to walk the line between taming inflation and decreasing the health of the banking industry, as more banks continue to fail.

https://finance.yahoo.com/news/pacwest-leads-regional-bank-stock-080751366.html?guccounter=1

Farmers Coop’s Grain Team is available for helping develop marketing plans for producers. Call the Hemingford Grain line at 308-487-3325 to discuss current markets and strategies.