Planting is underway or about to start for most Louisiana crops, and farmers are watching the markets closely as the world economy reels from the fallout created by the coronavirus.
LSU AgCenter economist Michael Deliberto says that commodities are looking better this week, and the stock market has improved some. But uncertainty from the pandemic is a dominant factor in the economy.
“The markets have improved a little from last week,” Deliberto says. “Corn and soybean futures have started the week up while cotton started the week down. U.S. stock indices also are higher from last week.”
Grain markets are moving higher, building on last week’s recoveries in soybeans and wheat, with speculation that global buyers will boost purchases to increase food security reserves.
Rice has made a big jump in price, with May contracts on March 23 for $13.35 per hundredweight, or $21.63 a barrel, or about $6 a bushel.
Increased rice exports have boosted prices, and demand is strong for rough and milled rice, Deliberto says. Rice is one of Louisiana’s top exports, with more than $300 million worth of crop produced here each year.
Cotton, another of Louisiana’s top crops, has not fared well in the past few days, with prices falling to the lowest levels since 2009.
“There are also concerns the plunge to an 18-year low in crude oil futures will push more textile production to synthetic fibers when global textile plants resume normal operations,” Deliberto says. Read the full report from the LSU AgCenter.
