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Farm Bankruptcies Decline During 2020

Farm bankruptcies were down slightly in 2020, but an industry economist warns farmers are “not out of the woods yet.” Caseload statistics from U.S. Courts indicate that Chapter 12 family farm and family fishery bankruptcies totaled 552 filings during 2020, down 43 filings, or seven percent, from 2019 third-highest over the last decade. American Farm Bureau Federation Chief Economist John Newton writes in a Farm Bureau Market Intel analysis, “these numbers should not be considered a sign that the farm economy has recovered.” In 33 of the 94 district court regions, Chapter 12 bankruptcies increased from prior years. According to the Kansas City Federal Reserve, delinquency rates at commercial banks continue to increase, and USDA recently temporarily suspended debt collections, foreclosures and other activities on farm loans to support distressed farmer borrowers.

Oil Prices Jump To 10-Month High On Weak Dollar

-     Royal Dutch Shell (NYSE: RDS.A) resumed LNG exports from its Prelude facility in Australia after a lengthy period of maintenance. Tuesday, January 12, 2021  Oil prices shot up to a 10-month high, posting further gains in the wake of the OPEC+ cuts, and edged a bit higher by a weaker dollar. Some analysts are starting to argue that the rally is getting a little overdone. WTI is above the 200-week moving average, and “it may soon top out,” according to Commerzbank.  LNG prices skyrocket. JKM prices for LNG in northeast Asia are shooting through the roof. Cold weather and higher demand in China and Asia have JKM prices for February delivery well above $21/MMBtu, while individual spot cargoes have traded in the high $30s/MMBtu, breaking all-time record highs. The cost to rent LNG tankers is also breaking records.

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