Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
    
   
   
   
   
   
   
   

Agricultural News


Less Uncertainty About Future Corn Prices Highlights Liquidity

Thu, 30 Jan 2014 11:58:03 CST

Less Uncertainty About Future Corn Prices Highlights Liquidity
A high probability of lower corn prices in 2014 is leading to prospects of lower incomes for U.S. corn producers. The latest issue of the Main Street Economist from the Kansas City Fed explains that markets appear more convinced that corn prices are unlikely to match the levels of the past few years. Expectations of lower corn prices and reduced profitability for 2014 corn production underscore the importance of liquidity for agricultural producers.


Though crop producers often characterize price uncertainty as a nuisance to be managed through various risk management strategies, less uncertainty is not automatically better for producers. Expected future corn prices are significantly less volatile now than in recent years, but the decreased uncertainty is accompanied by prospects of considerably lower prices. The variability of expected harvest prices mirrors that of a decade ago as diminishing ethanol growth has curbed demand potential.


Liquidity allows producers to combat potential short-term risks of significantly weaker, or even negative, profit margins. Overall, farmers have greatly improved their cash position in the last several years, suggesting that a crisis in 2014 is unlikely. However, some less-liquid operations may be more exposed to short-term risk than others and weaker profitability could intensify challenges beyond 2014.


The full article is available from the Kansas City Fed at https://www.kansascityfed.org/publicat/mse/MSE_0513.pdf.



   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Thursday, January 23, 2020  Thu, 23 Jan 2020 15:53:25 CST
  • EPA and Army Deliver on President Trump's Promise to Issue the Navigable Waters Protection Rule - A New Definition of WOTUS  Thu, 23 Jan 2020 15:41:06 CST
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Thursday, January 23, 2020  Thu, 23 Jan 2020 15:29:42 CST
  • NPPC Applauds EPA's Actions to Replace WOTUS Rule  Thu, 23 Jan 2020 15:25:13 CST
  • New Clean Water Rule Provides Clarity, Certainty to Farmers and Ranchers  Thu, 23 Jan 2020 15:20:44 CST
  • NAWG Applauds Release of Updated WOTUS Rule  Thu, 23 Jan 2020 15:16:24 CST
  • Secretary Perdue Statement on EPA WOTUS Rule  Thu, 23 Jan 2020 15:11:31 CST
  • NCGA: New WOTUS Rule Good News for Agriculture  Thu, 23 Jan 2020 15:07:09 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.