Natural gas deflates as temps rise
Milder weather pushed gas prices sharply lower this week, possibly more than any other commodity. Warmer than normal temps in the southeastern portion of the U.S. could have contributed to the decline.
The Energy Information Administration inventory report, released on Thursday, indicated the stockpile of gas in storage had dropped below the five-year average, which should have lifted prices, but the market was not impressed. Early Friday, gas hit the lowest level since Jan. 3.
Natural gas, composed mostly of methane, is used for home and commercial heating, drying grain and serving as the chemical/feedstock from which nitrogen fertilizer is produced. Though soybeans produce their own nitrogen, corn and most other cash crops depend heavily on nitrogen to synthesize chlorophyll.
Egg prices boil over as farmers scramble to deal with bird flu
The bird flu, Asian Flu H5N1, continues to affect U.S. poultry and cattle farms with 20 million egg laying chickens having been destroyed in the last quarter of 2024. Utah, Oregon, Washington and California continue to face the problem, but recent outbreaks in Ohio have also caused lost flocks, while Indiana farmers are looking to spot the virus on their farms. In 2022 and 2023, 79.3 million chickens died due to H5N1. More recently, 60% of cases are from cage-free hens.
The USDA provides financial assistance to farmers who must destroy infected flocks. More than 930 dairy cattle in 16 states also have been infected. More than a billion U.S. dollars has been spent to compensate farmers. The 2019 price of eggs, $1.41 per dozen, jumped to $3.64 by 2024 and $4.15 by the end of the year with many stores charging double that amount as bird flu festers. Ice broilers (chicken meat) are also increasing in price as are turkeys and ducks.
Finding farm labor is no easy job
U.S. farms are facing a shortage of workers. As of 2023, there were an estimated 2.4 million farm employees, according to the Department of Commerce Bureau of Census. Some 26% of workers are female. The average age of farm help is 39.6. Mexican or Hispanic workers make up 55% of the workforce while White non-hispanic workers make up 31%. A full 56% are U.S. citizens with 46% having been born in the U.S.
In 2005, the H-2A Visa Program, allowing seasonal visas to foreign workers, gave out 48,000 such visas. By 2023, that number rose to 378,034 with average time spent working at 5.75 months per year. The Department of Labor estimates that 40% of farm workers do not have legal authority to work in the U.S.
The move to send undocumented workers out of the country and the rapidly declining number of farm families staying on the farm present an alarming issue for farmers and consumers across the country.
Crops like strawberries, broccoli, lettuce and tomatoes require labor intensive harvesting. Each 10% reduction in available farm labor creates a 4.2% reduction in available fruits and vegetables. Farmers can opt for more profitable crops, causing produce shortages and higher prices. Labor shortages also exist in physical labor demanding jobs such as construction, health care and transportation.
CME midday prices: Price per bushel: March Soybeans, $10.48; March Corn, $4.85; March Wheat, $5.60. February Livestock per 100 pounds: Cattle, $204.60; Hogs, $85.10. Metals per troy ounce: April Gold, $2,844; March Silver, $32.25. March Copper per pound: $4.28. March Crude oil per barrel: $72.25. March Natural Gas $3.04 per 10,000 MMBTU.
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