Some Agricultural Products Hitting Higher Prices, Most Lower

DENVER, CO – According to a new Quarterly report from CoBank’s Knowledge Exchange, COVID-19 and the nationwide shutdown of many businesses and schools has led to an economic crisis. For agriculture, it comes at a time when markets were preparing to trade on the news of new trade deals between the U.S. and major trading partners. For the cotton market, despite strong exports, prices have sunk to new lows on fears of slower global economic growth. U.S. cotton exporters are optimistic about a faster export pace following India’s announcement of lockdown into the first half of April, which may impair India’s cotton exports. Meanwhile, rough rice futures surged to new highs, driven by a surge in retail rice sales and tighter global stocks. Specialty crop growers are fearing an even tighter labor situation unfolding this spring as the processing of new H-2A visa applications in Mexico is impaired by complications of the coronavirus. Specialty crops growers have benefited from the surge in produce sales at grocery stores but reduced exports due to logistical issues related to the global pandemic.