Crude Oil To Have Bigger Impact On Long Term Markets Than COVID-19, According To Analyst

Apr 03, 2020

The President of Ag Resource Company in Chicago doesn't think the COVID-19 outbreak will have much of an impact on the latest USDA seeding intention numbers.

Dan Basse feels mother nature will play a bigger role.

"But we are seeing farmers who are switching away from corn to possibly soybeans. Maybe a million acres could go from one to the other, but at this late date U.S. farmers are somewhat locked in on their intentions because of revenue insurance. So there may be some changes around the fringe but I don't think they'll be big unless we have another very inclement, wet spring like we had last year - the odds aren't in that favour but that's what it would take to jostle the numbers as we see them today," explained Basse.

The March 31st report indicated corn planted acreage in the United States is up 8 per cent from 2019 to an estimated 97 million acres. Soybean acreage climbed 10 per cent to an estimated 83.5 million acres.

Meantime, Basse says that while the markets indicate some countries buying more amid the COVID-19 outbreak, he feels the drop in crude oil prices will have a bigger impact than the virus will on long term markets.

"We say that because the ethanol and biofuel industries in the United States and across the world are struggling so much as biofuel prices are trading higher than where unleaded gasoline or some of the other petroleum derivatives are. So it's crude oil that really bothers us more than COVID in terms of our long term outlook of the agriculture market."

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.