Reports swirled on Monday that China was lashing back at the U.S. by temporarily halting purchases of U.S. pork and soybeans. However, daily sales tell a different story. So, will China continue to buy?
Plunging sales and plant closures are all creating a crisis right now for the pork industry. Hogs are stacking up on farms with farmers scrambling to find places to process them as the value per hog plummets.
The Smithfield Foods plant in Sioux Falls announced it was closing until further notice. As of Tuesday, 438 total workers have tested positive with COVID-19. That’s an increase of nearly 100 overnight.
Farmers across the country are being asked to dump their milk, as food service demand crumbled rapidly due to COVID-19. Still, farmers are frustrated that consumers can't buy as much milk as they want right now.
With a large increase in corn acres, and declining ethanol demand, the U.S. could be swimming in supplies. That’s why one analyst thinks there's downside price risk with putting corn in the ground this year.
USDA says farmers intend to plant 97 million acres of corn in 2020. As COVID-19 acts as an anchor on the markets, and the ethanol crisis continues to unfold, some analysts say 97 million acres could be a stretch.