Can You Take Me Higher

Feb 21, 2024

Creed’s song Higher, with its chorus “can you take me higher,” came to mind when learning of the latest increase in farmland values from the Federal Reserve Bank of Kansas City. Despite many headwinds, farmland values continue to answer Creed’s question with an emphatic “yes”. The latest evidence comes from a survey of commercial bankers by the Kansas City Federal Reserve Bank. Bank economists Cortney Cowley, Jannety Mosely, and Ty Kreitman report bankers in the Tenth District (Nebraska, western Missouri, Kansas, Oklahoma, Colorado, Wyoming, and northern New Mexico) indicated the value for non-irrigated land rose 11 percent in the fourth quarter of 2023 compared to 2022. Values on irrigated and pasture ground exceeded 2022 levels by 7 percent. The increases on non-irrigated and irrigated land in Nebraska were the highest in the district, up 15 percent and 9 percent, respectively. Pasture ground in Nebraska was up 3 percent.

The growth in land values came despite lower commodity prices, higher interest rates, and reports of financial strain among producers.

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Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

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U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
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Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!