markets in the agricultural industry

This show, powered by Agri-Gold, for Central Illinois, your Agri-Gold reps breadlar. He is your Agri-Gold reps for Central Illinois. This is back roads of Illinois on November 18th. Today, we were going to be having a conversation about the farm economy with Chad Hart from Iowa State University in Ames.

We talk about the foreign economy in the cash markets with cash markets in Central Iowa. We will see what happened with next few months. I enjoyed it in Kansas City for National Association of Foreign Broadcasters with some friends and colleagues in Kansas City for last week.

This time for Agree News and information sponsored by Agree Gold in Central Illinois. We talk about the hardships with the harvest season and the planting season in the Midwest like in Iowa. Illinois, Nebraska, South Dakota. I have a conversation with Terry Johnston for Farm Rescue in Kansas City.

The cattle and feed reporter on Friday morning at 11 central time from the department of agricultural. This will be putting the farm bill has probably passed for this December, but we will see what happened with next few months.

This is your agriculture news and information sponsored by AgriGold in Central Illinois on back roads of Illinois. We back with Chad Hart from Iowa State University.

This is your open numbers of the commodity markets from Kyle Bumstead from Allendale, England. Corn futures are down at 4 to 6 cents to the quarter. Soybean futures are down at 4 to 5 cents. Wheat futures are up to 9 to 8 cents. Let's go with livestock markets.

How is the cattle markets and hogs markets for today's opening for this morning? Cattle futures are down to five to ten cents that they have. Feet are cattle are down at four to ten cents. Lean hogs are down at four to five cents one quarter. Crude oil are down at six to eight cents per barrel.

Dow Jones is up to eight points. Get the most for every acre with Agri Gold seeds for your field. You can visit our website at Agri Gold. Come or call your local retail dealer today.

Agri, gold chews, seats for Central Illinois. We were going to be having a conversation about the farm economy with Chad Hart from Iowa State University in Ames.

a chat. How are you today? I'm doing well. So sorry. And I hope you can say the same. Let's talk about the farm economy with the election in the world for this year. What is your thoughts are?

Well, we've seen, you know, definitely farm incomes have declined as we've seen these lower commodity prices set in over the past couple of years. And that's having some sizable impacts as we look at the farm and rural community as a whole. As we've watched companies like John Deere have layoffs because of lower equipment sales than they had expected. And we've also seen challenges when it comes to agricultural lending. And so

We are dealing with definitely a slowdown within the farm economy.

But we also let's call it see some opportunities for growth out there. When you think about how large the crops were this year, especially with corn and soybeans being at near record levels, we continue to see usage be fairly strong. And one of the things I am interested in as we look forward here is how the election changes the dynamics within the market, especially when it comes to trade.

Do you have any concerns about the sustaining and the farm economy? I do have concerns, and I guess I'll frame them this way. It's more the question of, is the downturn we're experiencing now sort of V-shaped where we could see some fairly rapid recovery? Or is it sort of more U-shaped like we went through with the last big downturn back in 2013, 2014, 2015?

And I think, you know, if you were to pull a bunch of agricultural economists, I think more folks are lining up now with that U-shaped sort of recovery here that we may be in this downturn for an extended period of time, especially if international trade is hampered in some way over the next couple of years. Chad.

What is the cash market since central Iowa like in all Tona and Marshalltown, Iowa? Our cash markets have settled into

A little bit around the $4 range, mostly for corn. We're floating in that high $9 range as we're looking at soybeans. Down significantly from a couple of years ago, but they're actually up a little bit from their free harvest low. We saw a lot of our lowest cash prices hitting in early to mid-August.

Throughout September and October, we gained about 15 to 20 cents a bushel for both crops. And that has alleviated at least a little bit of pressure when it comes to the cash markets. Did you talk to some folks about the cash markets?

When it comes to what I've been hearing about the cash markets, there have been a lot of producers that have definitely utilized their storage, filled that up in hopes of gaining on those cash prices as we go into next spring and early summer. They're looking for that seasonal price rally that we do tend to see within the crop markets. So I think a lot of folks are sort of banking on that.

possibility of slightly stronger returns. As we look for that seasonal price bump, I think though, at same time too, they're not expecting necessarily for those prices to get to profitable levels. This is more about minimizing the potential losses that they might capture within the cash market. I'm wondering what is your thoughts on the biofuel for right now?

Biofuel-wise, it's the case of fairly strong within the markets, but the question is, is there a possibility for growth as we look out there? As we look at the ethanol market, for example, the last few weeks, we've been seeing tremendous usage of corn through the ethanol industry, and so that has been fairly strong through most of 2024.

When we look at the bio field side for soybean oil, we have seen that grow in importance over the past couple of years. It's sort of stabilized at around a 5 billion gallon market as we look out there right now. And so both on the corn and soybean side, that has been helpful over these last couple of years. It hasn't been strong enough to necessarily take prices higher, but it has helped stabilize them here, especially as we went into harvest time here in 2024.

What is the trends for biofuel for right now? Right now, I would argue stable. The idea is, like I say, when you're looking at ethanol, it's producing as about as strong as it can. And since we're not adding any more new plants, we're not going to see that grow, but it's also not shrinking at all either. And so stable seems to be the name of the game there.

As we look at the renewable diesel side, we had been watching that grow fairly dramatically over the past couple of years. But I think within the past three, four months, we've seen that market slow down significantly. And again, it seems to be entering a stable phase within its market. And so that's good, strong, stable demand. But at a time when you're dealing with such large supplies,

You kind of think somewhere thoughts are recap of our conversation.

Like I say, when I'm looking at the farm economy, we're finding some challenging times out there. And so as we're looking down the line, one of the big questions will be, do we continue to see crop usage growing as we go into 2025? And we brought up to two big areas to really concentrate on biofuels and exports. And so when you're looking for where improvement could happen within the farm economy, it would have to be led by those two demand sectors.

Thanks Chad. My pleasure sir. This is Chad Hart from Iowa State University in Ames on back roads of Illinois.

January feeder cattle dollar plus two point five zero zero closing a two hundred and fifty two dollars February live cattle dollar plus two point zero two five closing a dollar one eight eight dot zero zero zero February lean hugs dollar dash four hundred closing a dollar a two dot eight seven five

March corn minus two single quotes, zero, closing at $4 and 37 since single quotes, six January soybeans minus 11 single quotes, two closing at $998 single quotes for March Chicago wheat plus two single quotes, zero, closing at $5.

and 67 cents single quote six March Casey leads plus to single quote for closing at five dollars and 69 cents single quote for closing quotes provided by our bumstead branch office manager Erickson.

Nebraska 3 0 8 7 0 8 7 3 4 0 Allendale Incorporated. Thanks to our friends from Allendale for bringing the final numbers.

Thanks to Chad Hart from Iowa State University. Thank to listen on Back Roads of Illinois. You can listen to our show on YouTube and when you get your podcast. This been Back Roads of Illinois. I am Cesar Delgado of a great day.