Sometimes you simply need to “turn the markets off and just farm.”
A Chicago-based analyst is encouraging farmers to do just that.
China (on Friday) announced plans to impose new tariffs on $75 billion worth of United States goods. The proposal targets numerous agricultural goods, including beef, corn, pork, sorghum, soybeans and wheat. Greg McBride, commodities broker with Allendale, offers some logistics.
“The Chinese will add a five-percent tariff to U.S. soybeans as of September 1, a 10-percent tariff on wheat, corn, sorghum, beef and pork, and a new tariff to crude oil, which will be five-percent as of September 1,” McBride said.
Grain and livestock markets reacted adversely to Friday’s news. Analysts will keep a close eye on trade developments, as well as weather forecasts as we head toward a new work week.
“As we go into next week, we want to see if we are going to continue to meet with the Chinese in September. That is still in the books, according to what we know. After all this lobbing of the tariffs back and forth it’s tough to think that they won’t that off and regroup,” McBride said. “Beyond that, we need to watch these weather trends.”
Below average temperatures look to dominate the extended forecasts. Allendale Inc. says the drop in temperatures “creates concern of potential drag on production, at a time when late-planted corn and soybean crops need more warmth and sunshine.” However, McBride encourages producers not to fret. Instead, he suggests you “turn the markets off and just farm.”
“Get out there and do what you do. Turn the markets off and just farm. Pay attention to what you need to do and just grow your crop. At the end of the season, we’ll see if yields come back lower from the USDA, and then we see a price hike. And if not, you might have to put some in the bin, sit on it and wait until next spring to market at higher prices,” McBride said.