Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   
   
   

Agricultural News


CoBank Reports Rising Output Compressing Agricultural Margin in Latest Quarterly Economic Outlook

Fri, 12 Oct 2018 12:33:33 CDT

CoBank Reports Rising Output Compressing Agricultural Margin in Latest Quarterly Economic Outlook Strong growth in both the U.S. and global economies will support increased demand in domestic and export markets through the end of the year. However, U.S. competitiveness is currently constrained by trade uncertainties and the elevated value of the U.S. dollar, further placing pressure on the agricultural economy as output in most industries rises.


The latest Quarterly Rural Economic Review from CoBank’s Knowledge Exchange Division indicates that any significant farm price improvements over last year’s prices will be limited, particularly with record U.S. yields for many of the major crop commodities adding to available supply levels. Meanwhile, the animal protein and dairy sectors continue to benefit from strong domestic demand and the promise of better access to Mexico and Canada, but will need more export market growth to absorb their current pace of output and expansion.


“Agricultural markets are being squeezed as prices remain weak,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange Division. “While recently negotiated trade deals show some upside for agriculture, global demand for output from the U.S. agriculture sector is being outpaced by current U.S. production.”


CoBank quarterly economic reviews provide updates and market outlooks covering several topics and industries, including: Global and U.S. Economic Environment; U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Other Crops; Specialty Crops; and Rural Infrastructure Industries.


Key Factors and Findings


The CoBank report reveals that the escalating trade war with China is the leading risk for U.S. agriculture and that retaliatory actions taken by China and other trading partners have raised concerns of long lasting effects on agricultural supply chains. However, U.S. Department of Agriculture assistance to farmers and ranchers suffering hardship may have a modest impact on farm financial conditions.


Other key findings include:


- Sustained growth in emerging markets will support increasing demand for higher value products such as animal protein, dairy and specialty crops.

- With the trade environment in flux, the U.S. economy remains on strong footing with tax reform and increased government spending providing significant fiscal stimulus.

- In specific commodities, 2019 could see record yields for U.S. corn, soybeans and cotton, which is boosting supplies and limiting price improvement. For wheat, concerns about production shortfalls in the EU and FSU regions have pushed prices higher.

- The animal protein sector has benefited from low commodity prices and excess supply, but trade concerns continue to weigh on beef, poultry and pork markets. However, domestic consumer demand remains stout for animal protein, although pork is experiencing the biggest jolt caused by trade disputes and oversupply.

- Although the dairy markets have been weak, they continue to show modest signs of improvement through the third quarter of 2018, though producer distress remains, forcing some to exit the business.

- The Federal Communications Commission announced the results of the CAF II auction in August, which awarded $1.488 billion in funding over the next 10 years to expand rural broadband access in unserved areas across 45 states.


The full quarterly U.S. rural economic review, “Rising Output Compressing Agricultural Margins,” is available at cobank.com.


Source - CoBank




   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Thursday Market Wrap-Up with Justin Lewis  Thu, 18 Oct 2018 16:52:47 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Thursday, October 18, 2018  Thu, 18 Oct 2018 16:38:41 CDT
  • US Wheat Associates Hopes Wild Ride Will Be Worth It at the End of the Day  Thu, 18 Oct 2018 15:41:01 CDT
  • Soybeans are the Proverbial Canary in the Coal Mine for Crop Farmers- KC Fed Official Says Critical Marketing Period Ahead for the Crop  Thu, 18 Oct 2018 04:41:42 CDT
  • Rancher Donnell Brown Believes Five Traits Measured by Genomic EPDs Can Simplify Bull Selection  Thu, 18 Oct 2018 03:58:16 CDT
  • Trade News has Pork Producers Feeling Optimistic, White House Encouraged to Keep Deals Coming  Wed, 17 Oct 2018 18:13:49 CDT
  • Checking In on the Beef Checkoff - New 2019 Fiscal Year Budget Priorities Check All the Boxes  Wed, 17 Oct 2018 17:56:38 CDT
  • Oklahoma State FFA Speech Winner Emily Garrett of the Kingfisher FFA Chapter Headed to Indy  Wed, 17 Oct 2018 17:30:01 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.