Commodities

Layton Ehmke

Following months and months of incredibly dry weather, the good news is that much of Kansas finally got some badly needed rain, ice and snow several weeks ago back in January. With that precip, the wheat plant roots are finally starting to grow.

And it looks like a fair amount of the Kansas wheat crop now has a future.

Creative Commons CC0

A western Kansas farming family struggling to keep their fifth-generation farming operation afloat amidst a slump in corn, wheat and other commodity prices is featured in a Wall Street Journal article about the struggling farm economy.

The ongoing slump in corn, wheat and other commodity prices, caused by global oversupply, is putting many farmers in debt and in some cases, resulting in farm closures.

Down times in farm country persist, but not yet a ‘crisis’

Jan 17, 2017
Elliot Chapman

Farmers across the Midwest are trying to figure out how to get by at a time when expected prices for commodities from corn, to wheat, to cattle, to hogs mean they’ll be struggling just to break even.

“Prices are low, bins are full, and the dollar is strengthening as we speak and that’s just making the export thing a little more challenging,” says Paul Burgener of Platte Valley Bank in Scottsbluff, Nebraska.

Kristi Koser / Harvest Public Media

From Harvest Public Media:

At the grocery store, processed foods like cereal, crackers and candy usually maintain the same price for a long time, and inch up only gradually. Economists call these prices “sticky” because they don’t move much even as some of the commodities that go into them do.

Take corn, for example, which can be a major food player as a grain, a starch or a sweetener.  

Amy Mayer/Harvest Public Media

On a frigid winter day, Chad Hart tries to warm his economics students at Iowa State University to the idea of managing some of the risk of farming using the commodity markets. Because, as he told them on the first day of class, farmers don’t make money planting or harvesting crops; they make money selling them. And Hart knows that marketing—managing those sales for the best profit—can be intimidating.

Markets woo wary farmers

Aug 30, 2012
Jeremy Bernfeld/Harvest Public Media

Farmers are the bedrock of the agricultural commodities markets – after all, they make the products that are traded there.

But after the October bankruptcy of commodity trading firm MF Global and more recent allegations of shady dealings at Iowa futures firm Peregrine Financial, the bedrock is shaking.

That’s why CME Group, which owns the Chicago Board of Trade and the Chicago Mercantile Exchange, is working hard to regain farmers’ trust.