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
Physicists have developed a new technique that uses electrical voltages to control the electron spin on a chip. The newly-developed method provides protection from spin decay, meaning that the contained information can be maintained and transmitted over comparatively large distances, as has been demonstrated by a team from the University of Basel’s Department of Physics and the Swiss Nanoscience Institute. The results have been published in Physical Review X.
For several years, researchers have been trying to use the spin of an electron to store and transmit information. The spin of each electron is always coupled...
What is the mass of a proton? Scientists from Germany and Japan successfully did an important step towards the most exact knowledge of this fundamental constant. By means of precision measurements on a single proton, they could improve the precision by a factor of three and also correct the existing value.
To determine the mass of a single proton still more accurate – a group of physicists led by Klaus Blaum and Sven Sturm of the Max Planck Institute for Nuclear...
The research team of Prof. Dr. Oliver Einsle at the University of Freiburg's Institute of Biochemistry has long been exploring the functioning of nitrogenase....
A one trillion tonne iceberg - one of the biggest ever recorded -- has calved away from the Larsen C Ice Shelf in Antarctica, after a rift in the ice,...
Physics supports biology: Researchers from PTB have developed a model system to investigate friction phenomena with atomic precision
Friction: what you want from car brakes, otherwise rather a nuisance. In any case, it is useful to know as precisely as possible how friction phenomena arise –...
19.07.2017 | Event News
12.07.2017 | Event News
12.07.2017 | Event News
20.07.2017 | Information Technology
20.07.2017 | Materials Sciences
20.07.2017 | Physics and Astronomy