Market Update

As concerns mount about the potential damage to Mississippi crops from the flooding of the Mississippi River and its tributaries, many are left with more questions than answers.  For those with crop insurance we are being told to remain in contact with your insurance agent regarding any potential re-planting due to the variability of the dates that various crops can be re-planted under the insurance programs.  Of course, the next prominent question is when will the waters recede for field prep and planting, and that remains uncertain to say the least.  The unique aspect of crop production in Mississippi as compared to the Plains, Midwest and Corn Belt is the flexibility of crop choices.  However, if the waters linger in fields this advantage could quickly disappear.

Markets appear to be focusing on factors outside of the delta region as equity markets and the US dollar have placed pressure on most crop futures contracts this week.  Delayed plantings for corn across the Corn Belt are still prevalent but have been pushed aside in the last few days.  As corn plantings get pushed back the logical thinking is that those acres will eventually shift to soybeans. As a result soybean prices have been moving lower.  The down stocks market along with a slight renewal of supplies from cotton production in the Southern Hemisphere has led to lower cotton prices despite the severe drought conditions in the Texas Panhandle.

The MSU Agricultural Economics department will continue to follow the developments and if you have any questions do not hesitate to call.