Hoosier Ag Today by: Gary Truitt
If you are not happy with the current level of corn and soybean prices, then you are not going to be happy for a long time because the long term outlook from USDA is not encouraging. A decade is a long time, and a lot can happen over 10 years, but that has not stopped the analysts at USDA from projecting crop prices for the next 10 years. These projections do NOT take into account droughts, floods, wars, economic booms or busts, or even advances in technology, or anything else that would upset the current trends of supply and demand. That is good because, unless something dramatic happens, corn prices are not going to change very much, says David Stallings, “We believe they will continue to decline in 2016 and 2017 and then increase just marginally.”
By 2025, they expect corn prices to be averaging 3.75 up a whole dime from this year’s projected average. As for soybeans, Stalling said, “We see prices falling in 2016 and 2017, but then see a decline in soybean planted acres and an increase in soybean prices.” They are forecasting soybean prices to gain 40 cents a bushel by 2025.
Things do look a tad better for wheat long term but not in the short run, says Stalling, “Higher stocks and lower corn prices will keep the wheat market under pressure through 2017, but then a pickup in export demand will help prices recover a bit.” Wheat prices are forecast to average 4.95 by 2025.
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