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.