Commodities generally have a cycle between 25 and 30 years, according to Dan Hueber of the Hueber Report. For this current cycle, Hueber told AgDay host Clinton Griffiths things are looking promising.
“In the ag sector, we probably have the worst of it behind us,” said Hueber. “Cyclically, we should have put in lows this year.”
He said moving ahead means higher prices, but a stimulus is needed and it isn’t here yet.
Looking forward into 2017, he said there are huge supplies of corn and soybeans, which is already a known factor so the market has already built the supply into the price level.
“We really have pretty solid demand factored into the equation,” said Hueber.
Watch Hueber give his weather thoughts on 2017 and how drought in the southeast could mean drought for other parts of the country on AgDay above.