Loading…
K-State extension reports that higher grain prices after Russia's invasion of Ukraine have pushed marketing year average prices up, which may keep ARC and PLC government program payments from being triggered. The analysis draws on updated MYA price estimates tied to the February USDA Agricultural Prices report.
Higher price estimates reduce the likelihood of government risk-program payments, so producers must rely more on market sales and hedges, which can add to near-term farm marketing pressure on grain. The effect on feed prices is indirect and mainly reflects the rally already seen in wheat and corn.
hpj.comDave BergmeierMar 25, 2022After 318 past bullish policy events, Corn moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
After 37 past bullish policy events, Wheat (HRW) moved a median -0.1% over 5 sessions (41% higher; middle half -3.4% to +2.0%), and -3.3% over 20.
After 182 past bullish policy events, Wheat (SRW) moved a median +0.1% over 5 sessions (52% higher; middle half -1.9% to +1.4%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
