COLUMBIA, Mo.– Commodity prices both in the U.S. and worldwide are under pressure and likely to remain so for quite a while.
University of Missouri Extension ag economist David Reinbott says it is because of supply and demand.
“We’re looking at record corn and soybean yields in the United States,” Reinbott says. “While demand is starting to come back, it is just not coming back as fast as the increase in supply, so it is going to continue to put pressure on our prices.”
Reinbott expects December corn futures to be between $3.15 and $3.50.
“A lot of this will depend on what production is going forward and also looking at South America,” Reinbott says. “We are getting a little bounce in the price of corn and soybeans because it’s getting a little dry in South America.”
However, Reinbott says the pressure on prices will continue until a problem in production is seen either in the last half of the U.S. harvest or in South America in the coming year.
And don’t expect input costs to parallel dropping crop prices. “Fertilizer costs have gotten a little cheaper and will help out some, but I don’t really expect to see a major drop in a lot of inputs,” he says.
Reinbott says farmers need to utilize their storage this fall. Most farmers he’s talked to have sold as much as they can and will store the rest. He recommends farmers stay in close contact with their grain elevators and keep track of basis bids.
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