An Interview with John Perkins
The Commodity Markets according to John Perkins from Brownfield Ag News
An Interview with the Nationally Syndicated Radio Host
You’ve heard him on your local radio station for years, the distinguished voice bringing you the latest news and reports on the Commodity Market. He’s been relied upon for market predictions and trends in the future of corn, soybeans, wheat, cattle and hogs and is recognized as one of the premier commodity market reporters in the country. While he understands the importance of the markets to Ag communities across the country, John Perkins is more than just the voice, he’s an advocate for vital role that American Agriculture plays in our local and global economies.
“The global agriculture market is like a set of dominoes, you flip one and you’re going to knock a lot of others down.” – John Perkins, Brownfield Ag News
I caught up with John Perkins as he sat in the Brownfield Ag News studios in Jefferson City, Missouri where his Commodity Market Reports are broadcast to over 380 radio stations in 10 states, and got the inside scoop from one of the nation’s leading broadcast journalists.
What are the biggest factors affecting the price of corn and soybeans today?
“Without a doubt, the number #1 factor affecting the price of corn and soybeans is the surplus supply,” said Perkins without hesitation. We have much larger supplies of corn and soybeans than we’ve had over the last several previous marketing years. On top of that, big corn crops in Argentina and Brazil are affecting the price along with South Africa’s recent bounce back.
In terms of other sectors in agriculture affecting corn and bean prices, Perkins commented on livestock saying, “Low livestock numbers also play a role in the price and today we are not feeding as many cattle or hogs. The PEVD epidemic has had a big effect on livestock numbers and to some degree, avian influenza are contributing to the current pricing trend.”
Perkins went on to reflect on the American dollar, stating that “recent dollar strength is definitely having a negative impact on commodity prices. A stronger dollar in a larger sense is typically a good thing for America, but in terms of agriculture and dollar-denominated commodities on the export market it’s not exactly that. U.S. corn and soybeans become higher priced and in turn reduce the export demand – we see this coming into play with corn in particular, but not so much with soybeans.”
What could change or influence the current market situation?
With a tone of concern, Perkins said, “Well, unfortunately, it would probably take a massive crop failure to turn the market around. That’s something that no one wants to see, myself included.
If we stay in this El Nino weather pattern that is expected to happen this summer, we’ll probably see another bumper crop. This marketing year we are starting to see signs for an expansion of supply and that continuing into the next two years as well.
Looking back, we ended the 2013-2014 marketing years with ending stocks of soybeans as 92 million bushels and it’s only grown since. All in all, improved efficiencies, favorable weather, and scientific advancements in hybrid seeds and treatments are all connected to current state of the markets.
What excites you most about agriculture today?
“Anyone with an interest in agriculture is practically required to have some knowledge on a variety of topics. But what excites me most is the potential for agriculture to expand, be more influential, and be more integrated into the lives of more Americans. Food insecurity for many people across the globe will continue to be driving force toward innovations and the success of American farmers.”
What’s your long-term outlook for competing in a global economy?
“As much as we might want to stake our pride on the quality of the grains we produce, we have to recognize that we face competition from a lot of countries that are expanding their infrastructure at a greater rate than we are.
As recently as last year, America has faced infrastructure and transportation issues that have affected our ability to get commodities out into the market faster than other countries. Long-term, these larger issues should be addressed – getting better at shipping and transportation and getting our grains to market faster are key drivers for our long-term success.”
“Right now we are in a supply bearish environment and it’s a market we haven’t seen in quite some time,” added Perkins.
Interviewing Perkins was a good exercise supply & demand economics. John’s keen on the ways our national and global politics continually shape our agricultural future and ultimately our agricultural heritage. I think John would be the first to say that he doesn’t have a crystal ball into the future of agriculture, but he’s keeping a close watch on the pulse and will continue to be a strong voice each step of the way.
How can you listen to John’s Commodity Reports?
Tune in locally on the radio or visit www.BrownfieldAgNews.com
P.S. : I asked John to give us the run down on The Top 5 Best Places to Eat in Jefferson City, Missiouri
…here they are
Best Restaurants to Eat at in Jefferson City, Missour
The go to for smoked meats, ribs and more. John Perkins recommends you make a visit here first!
Try the steak or polenta cakes… a sure fire win according to Perkins!
As far as international cuisine is concerned, Suwaddee delivers on every pad Thai dish on the menu. “The curry wont’ disappoint either,” said Perkins.
For the best in Nepalese, Korean and Indian cuisine, Perkins suggest you stop at the Everest Cafe on Missouri Blvd.
You’ll have to keep tabs on their location, but it’s worth searching them out! The jerk chicken is mouth watering!
About the Author
The Back Forty is regular column written by Published Author & Purdue Graduate Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.Prairiefarmland.com/blog