Rain and floods May Bring Good News For Corn Farmers In 2020 Says Fertilizer Company
The Canadian fertilizer company Nutrien believes that after a year plagued by torrential rain, farmers will make a comeback in 2020. The CEO of Nutrien Chuck Magro said farmers could plant as many as 95 million acres in 2020.
Due to the unprecedented rainfall this spring and summer, untold amount of acres remain un-planted. Magro says due to the rain and the missing produce, the corn prices have dropped. There will be big incentives for farmers to plant more seeds.
Chicago’s December corn stock ‘Cv1’ traded 10% up from last year at this time. All signs point to a positive upswing for US farmers in 2020. Magro added, “we do expect a pretty significant rebound in market fundamentals in 2020.” Magro said there are a few indicators that would indicate a better 2020 is in store for farmers. Pricing is one of them. Crop protection in the third quarter is also on the rise.
Leading Agricultural Experts Say 2020 Probably Going To Be A Very Good Year For Farmers
Farmers are hopeful that the latest predictions for a better 2020 comes to fruition, many are embracing the warm predictions. Shares for Nutrien have seen a 8% jump on the Toronto Exchange.
This in spite of forecasts that foretold losses due the wet spring in the U.S. Which caused less spending by US farmers on fertilizer products. Nutrien has been able to remain study on the markets, despite the US having the worst planting season on record.
Nutrien is the largest fertilizer maker in the world. It also has the most amount of retail locations of stores in the U.S. The full numbers are not yet available. Experts are saying that this year’s corn crops will between 85 and 87 million acres. Those numbers of planted acres is the lowest amount in ten years.
Corn Farmers Are One Of The Largest Customers For Fertilizer Businesses
Nutrien also advises the corn farmers generally need more fertilizers for their crops. Much more so than soybean farmers, that is part of the positive forecast by Magro.
The U.S Department of Agricultural, (USDA) is taking the nontraditional steps of reassuring a new report about planted crops. The new report the USDA will conduct is due to the data released in the latest report. Which claimed 91.7 million crops of corn have been planted. Farmers have been disputing that amount, saying it’s much less due to all the rain.
Traders have also been raising doubts the number the USDA released was ‘way off.’ The USDA is in the midst of conducting the date for their new report, the new data is expected in a report on August 12.
The rain of 2019 has been relentless and continues to be an issue, even curtailing search efforts in Missouri. Where two brothers that are cattle farmers from Wisconsin have been missing for over a week.