Darrel Good says corn, soybean and wheat prices dropped sharply this week in the first trading session after reports of a virus in Mexico that was spreading into the U.S.
“Because the incidences were referred to as swine flu, the concern was that demand for pork and therefore the demand for livestock feed would decline,” he said. “For now, that concern has been overshadowed by other factors and the prices of corn, soybeans and wheat moved sharply higher at the end of April.”
Good says grain prices were driven up by more traditional market influences, including reduced estimates of Argentina’s soybean harvest, large weekly U.S. corn and soybean exports, and extremely wet conditions in the eastern Corn Belt.
“Those wet conditions threaten to push corn planting beyond the optimal date for maximum yield potential and threaten the yield of the soft red winter wheat crop that will be harvested in June and July,” said Good, a professor of agricultural and consumer economics.
Spot cash prices for soybeans ended April at a seven-month high near $10.50 a bushel, while corn sold for $3.80 a bushel, at the high end of a price range seen since last fall, he said. Cash wheat prices also recovered from Monday’s tumble, gaining about 50 cents a bushel.
“Such a negative reaction is typical with episodes that create so much uncertainty,” Good said. “The hope is that the initial knee-jerk reaction will be followed by more thoughtful responses. The extent of reported influenza cases will be important in determining the depth of demand worries.”
Hog prices, however, have yet to recover, he said. Lean hog futures traded near $70 per hundredweight on April 24, but dropped to $58 by April 30 amid worries sparked by the term “swine flu.”
U.S. and world health officials have since sought to restore public confidence by giving the virus new names, such as H1N1 or Influenza A, saying the strain of influenza cannot be contracted by eating pork products.
Still, several countries have placed restrictions on pork imports from Mexico and the U.S., Good said. He says the limits could have serious price implications in the U.S., which typically exports nearly 20 percent of its pork production.
“At this juncture, it is not possible to predict the extent of the spread of H1N1,” Good said. “However, widespread recognition that H1N1 does not threaten the quality of pork may temper the concerns about pork consumption and allow hog prices to recapture the losses experienced this week.”
Jan Dennis | Newswise Science News
Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
The formation of stars in distant galaxies is still largely unexplored. For the first time, astron-omers at the University of Geneva have now been able to closely observe a star system six billion light-years away. In doing so, they are confirming earlier simulations made by the University of Zurich. One special effect is made possible by the multiple reflections of images that run through the cosmos like a snake.
Today, astronomers have a pretty accurate idea of how stars were formed in the recent cosmic past. But do these laws also apply to older galaxies? For around a...
Just because someone is smart and well-motivated doesn't mean he or she can learn the visual skills needed to excel at tasks like matching fingerprints, interpreting medical X-rays, keeping track of aircraft on radar displays or forensic face matching.
That is the implication of a new study which shows for the first time that there is a broad range of differences in people's visual ability and that these...
Computer Tomography (CT) is a standard procedure in hospitals, but so far, the technology has not been suitable for imaging extremely small objects. In PNAS, a team from the Technical University of Munich (TUM) describes a Nano-CT device that creates three-dimensional x-ray images at resolutions up to 100 nanometers. The first test application: Together with colleagues from the University of Kassel and Helmholtz-Zentrum Geesthacht the researchers analyzed the locomotory system of a velvet worm.
During a CT analysis, the object under investigation is x-rayed and a detector measures the respective amount of radiation absorbed from various angles....
The quantum world is fragile; error correction codes are needed to protect the information stored in a quantum object from the deteriorating effects of noise. Quantum physicists in Innsbruck have developed a protocol to pass quantum information between differently encoded building blocks of a future quantum computer, such as processors and memories. Scientists may use this protocol in the future to build a data bus for quantum computers. The researchers have published their work in the journal Nature Communications.
Future quantum computers will be able to solve problems where conventional computers fail today. We are still far away from any large-scale implementation,...
Pillared graphene would transfer heat better if the theoretical material had a few asymmetric junctions that caused wrinkles, according to Rice University...
15.11.2017 | Event News
15.11.2017 | Event News
30.10.2017 | Event News
17.11.2017 | Physics and Astronomy
17.11.2017 | Health and Medicine
17.11.2017 | Studies and Analyses