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
Blockchain Set to Transform the Financial Services Market
28.09.2016 | HHL Leipzig Graduate School of Management
Paper or plastic?
08.07.2016 | University of Toronto
Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.
"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...
In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.
A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...
By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.
"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...
COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.
In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...
'Ferroelectric' materials can switch between different states of electrical polarization in response to an external electric field. This flexibility means they show promise for many applications, for example in electronic devices and computer memory. Current ferroelectric materials are highly valued for their thermal and chemical stability and rapid electro-mechanical responses, but creating a material that is scalable down to the tiny sizes needed for technologies like silicon-based semiconductors (Si-based CMOS) has proven challenging.
Now, Hiroshi Funakubo and co-workers at the Tokyo Institute of Technology, in collaboration with researchers across Japan, have conducted experiments to...
14.10.2016 | Event News
14.10.2016 | Event News
12.10.2016 | Event News
21.10.2016 | Health and Medicine
21.10.2016 | Information Technology
21.10.2016 | Materials Sciences