Market Update

March 16, 2022

2021 ended with droughts in many of our seed production areas, and saw a great deal of trade unrest.

Agricultural markets have been affected in many different ways.  

Native grasses' supplies are not stable. Due to the weather pattern in Texas and Oklahoma, some late summer and fall maturing species did not yield well. Continued poor drought conditions and strong demand is reducing inventory levels that will require above normal harvest in 2022. If 2022 harvest is short some items will become unavailable.

Turfgrasses did not fare any better than native grasses. Bermuda grass has stayed the same or increased in price from the highs of 2021.  Cool-season grasses, such as fescue and ryegrass, are still in short supply.  Above normal harvest in the summer of 2022 is needed to replace inventories

Small grains for 2022 appear to be in trouble. Due to drought conditions west of interstate 35 our western production areas yields may be very low.  East of Interstate 35 saw little small grain production due to higher prices in the commodity markets of corn and soybeans.  While Wheat prices are high in March 2022 they were not in the fall during planting season.

Forage plants, such as millet and sorghum, are setting record high prices due to yields running 60% lower than a normal year. With hay supplies short in Texas/Oklahoma, spring forage seed is anticipated to be very tight.  Producers would do well to consider other options, such as Piper Sudan.

Fertilizer is feeling the impact of trade unrest and grain commodities record prices.  It’s pretty simply to say prices have doubled from spring of 2021. Justin Seed’s approach is to purchase for short term needs.

FUTURE OUTLOOK

Currently it is impossible to comment.  Lots of items are pointing to higher prices across the board and many items becoming short supplied if drought conditions continue.  It’s time to look at your long term budget and make adjustments when possible.