Christine's Feed
Jun 19, 2013

Big U.S. harvest may hit grain prices, test high farmland values

CHICAGO, June 19 (Reuters) – With the U.S. grain harvest set
to bounce back and pressure crop prices after last year’s
drought, some economists have cautioned that sky-high U.S.
farmland prices may be a bubble about to burst.

Kansas City Fed President Esther George has warned of rising
farmland values. Capital Economics economist Paul Ashworth said
in a recent research note to clients “there does appear to be a
localized bubble in Corn Belt farmland values” and the biggest
factor has been a surge in grain prices.

Jun 7, 2013

GMO wheat find weighs on U.S. Pacific Northwest white wheat

CHICAGO, June 7 (Reuters) – Demand from overseas buyers
remained quiet in the U.S. white wheat market in the Pacific
Northwest this week, after the discovery of a genetically
modified (GMO) wheat strain in Oregon was reported May 29, grain
merchants said on Friday.

Japan, the U.S. largest white wheat customer, declined for
the second straight week to bid at its weekly white wheat tender
due to concerns about importing the unapproved type of wheat.
South Korea has formally suspended U.S. wheat purchases, while
the European Union said it would step up testing.

May 19, 2013

Analysis: High speed trading a stiff challenge for U.S. regulators

CHICAGO (Reuters) – Financial trading in world markets has grown so lightning-fast that effective regulation is growing tougher by the second, increasing the threat of crashes sparked by hoaxes, electronic glitches or yet-unknown causes.

The latest alarm was triggered by a fake tweet saying that the White House was bombed, prompting a U.S. market nosedive that ended minutes later when the Associated Press said its Twitter account had been hacked. In 2010 U.S. stocks plunged in a “flash crash” following aggressive sales of stock-index futures by a mutual fund.

May 19, 2013

High speed trading a stiff challenge for U.S. regulators

CHICAGO, May 19 (Reuters) – Financial trading in world
markets has grown so lightning-fast that effective regulation is
growing tougher by the second, increasing the threat of crashes
sparked by hoaxes, electronic glitches or yet-unknown causes.

The latest alarm was triggered by a fake tweet saying that
the White House was bombed, prompting a U.S. market nosedive
that ended minutes later when the Associated Press said its
Twitter account had been hacked. In 2010 U.S. stocks plunged in
a “flash crash” following aggressive sales of stock-index
futures by a mutual fund.

May 16, 2013

US Midwest farmland values up 15 pct in 1st quarter -Chicago Fed

May 16 (Reuters) – Farmland prices in U.S. Midwest Corn Belt
states in the first quarter of 2013 rose 15 percent compared to
a year ago as demand for land remained strong but the frantic
pace of recent gains slowed down, the Federal Reserve Bank of
Chicago said on Thursday.

The Chicago Fed’s quarterly survey of 219 bankers also
showed prices of good farmland rose 4 percent in the first
quarter of 2013, from the fourth quarter of 2012. That compares
to a 5 percent gain over the same period a year ago.

May 15, 2013

U.S. Plains farmland values up 20 pct; gains ease -KC Fed

May 15 (Reuters) – Farmland values in the U.S. Plains states
rose 20 percent in the first quarter from a year earlier, with
acreage commanding record prices because of red-hot demand for
cropland in the world’s biggest food exporting nation, the
Federal Reserve Bank of Kansas City said on Wednesday.

The rise marked the third straight year of double-digit
annual increases, setting a survey record, the bank said, but
the rate of gains moderated from the fourth quarter, with slower
growth in farm income.

May 3, 2013

U.S. farmers should guard against debt binge if incomes fall -Fed

CHICAGO, May 3 (Reuters) – U.S. grain farmers have enjoyed a
rare combination of soaring prices and land values since 2009
but if incomes dip as expected they should be careful not to
fall into the trap of borrowing against inflated land values,
the Kansas City Federal Reserve said in a report on Friday.

“In 2013, historically high farm incomes are projected to
keep U.S. farm debt and leverage low. Yet longer-term
projections suggest that farm incomes could fall dramatically in
2014,” the study, entitled “The Wealth Effect in U.S.
Agriculture,” stated. “If agriculture’s historical wealth effect
holds true, farm enterprises might use existing wealth to
finance and smooth investment spending, sowing the seeds for
another round of debt accumulation.”

Mar 22, 2013

U.S. farm drought areas under pressure despite winter storms

CHICAGO, March 22 (Reuters) – Cool, wet late winter weather
across most of the U.S. Corn Belt has raised hopes that the
world’s largest food exporter will rebound from last year’s
historic drought but experts warn that many crop and pasture
areas west of the Mississippi River remain bone dry.

A series of storms in the past month brought several feet of
snow and much needed moisture to the central United States,
replenishing parched soils and filling low rivers just as the
U.S. planting season nears. Moisture is near normal for farms
east of the Mississippi River, the dividing line of the western
and eastern Corn Belt. But the west has not been as fortunate.

Feb 15, 2013

US Plains farmland up more than 20 pct, sets records -Fed

CHICAGO, Feb 15 (Reuters) – Farmland values in the U.S.
Plains states jumped more than 20 percent in the fourth quarter
from a year earlier as farms sold at record-high prices, with
the biggest jump seen in irrigated land given the worst drought
in 50 years to hit the world’s top food producer, the Kansas
City Federal Reserve bank said.

This was the seventh consecutive quarter irrigated and
non-irrigated cropland values posted year-over-year gains of
more than 20 percent as record crop prices kept demand hot for
farmland, according to a quarterly survey of bankers by the
Kansas City Fed released on Friday.

Feb 14, 2013

U.S. Midwest farmland prices rise to record highs-Fed

CHICAGO, Feb 14 (Reuters) – Farmland prices in the U.S.
Midwest Corn Belt states rose 16 percent in the fourth quarter
of 2012 from a year earlier, setting new all-time highs as
demand for farmland remained strong despite the worst drought in
50 years, the Federal Reserve Bank of Chicago said on Thursday.

The Chicago Fed’s quarterly survey of bankers showed prices
of good farmland in the October-December period notched the
third largest year-on-year increase since the late 1970s.
Farmland values gained an average 7 percent from the prior
quarter.

    • About Christine

      "As community editor for Thomson Reuters global on-line chatroom for grains traders and analysts, the Global Ags Forum, I lead chats on the latest factors driving grains and oilseeds markets worldwide, organize chat events with expert industry sources and promote the room to potential market players. Based in Chicago, I also report on U.S. cash and futures grains and oilseeds markets."
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