Michael Swanson News
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Corn inventories in the U.S., the biggest grower and exporter, are poised for the largest expansion since at least 1960 as production rebounds to a record from last year’s drought.
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Cloudless skies seldom look so ominous.
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Grain and oilseed prices rose the most allowed by the Chicago Board of Trade after the U.S. government said supplies will be smaller than forecast last month, increasing the cost of producing food and fuel.
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Bill Donald, the third-generation owner of Cayuse Livestock Co., sold the calves he raised early last summer and cut purchases of cattle after pastures dried up. The herd grazing his land now is about 85 percent of normal.
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U.S. cattle feedlots will have “slightly negative margins” this year amid high costs for livestock feed, said Michael Swanson, an agricultural economist at Wells Fargo & Co.
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Foreign food companies, banks and makers of fertilizer and chemicals will boost investment in U.S. agriculture as economic growth spurs demand, said an economist at Wells Fargo & Co., the largest U.S. lender to farmers.
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Feeder-cattle futures dropped for the sixth straight session on speculation that demand will slow as high U.S. feed costs discourage purchases of the animals. Cattle and hog futures were little changed.
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The multi-generation reign of U.S. farmers as the world’s largest corn exporters is about to end, after three straight years of slumping harvests ceded market share to Brazil, where production doubled since 2005.
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Corn futures fell from a 23-month high on bets that this quarter’s rally will erode demand for feed by U.S. livestock and poultry producers.
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All the soybeans in Iowa won’t be enough to meet the anticipated surge in China’s imports over the next four years as the nation feeds a record pig herd and drives bean prices to an all-time high.
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