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A University of Arkansas report says rice prices and planted acres are rising this spring, while corn, cotton and soybean farmers face weak prospects. The report also cites wet weather, severe storms and concern that COVID-19 could cut farm labor.
Rising rice acreage and prices offset some weakness, but labor shortages and weather could curb planting and support prices if they worsen.
talkbusiness.netGeorge JaredApr 22, 2020After 179 past bullish weather events, Rough Rice moved a median +0.4% over 5 sessions (55% higher; middle half -1.4% to +2.5%), and +2.2% over 20.
After 357 past bearish weather events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.3%), and -0.5% over 20.
After 363 past bearish weather events, Soybeans moved a median -0.6% over 5 sessions (42% higher; middle half -2.5% to +1.1%), and -0.2% over 20.
Not enough comparable past events yet for a historical read.
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.
Same-day University of Arkansas report on US rice prices and acreage, with wet weather and COVID labor concerns, bears directly on US rough rice supply and sentiment.
The Arkansas report on rising rice prices, wet weather and COVID labor concerns points to US supply-side support for rough rice, published right before the move.
