CQG News | Corn and Soybean Producers Turning to Options in a High Volatility Environment
Summary
Last year farmers and end-users were beset by several challenges: supply-chain struggles due to the pandemic, high input prices, inflation, plus a dry fall during U.S. winter wheat planting and droughts in Brazil and Argentina’s crop regions. Lackluster global grain harvests prompted some importing countries to secure additional supplies to ensure adequate food reserves. The conflict has affected Black Sea exports, limiting the supply source that goes to price conscious buyers such as Egypt and the Middle East, says Arlan Suderman, chief commodities economist at StoneX Financial. Doug Kirk of Terra Plana Family Farms, which operates 8,500 acres in central Illinois, says the war has amplified the variety of risks farmers face., including potential input supply shortages such as fertilizer and chemicals. India and Australia are currently covering global wheat demand, but he says corn and soybean sales are about twice the normal weekly pace for this time of year.
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