Ag Sector Has "The Worst Behind Us," Cyclical Low In

November 30, 2016 02:50 PM
 
 

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.

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Comments

 
Spell Check

Randy
Ashville , OH
12/1/2016 09:56 AM
 

  The worst may not be behind us yet,but like the positive out look.

 
 
Confused
Watseka, IL
12/1/2016 10:50 AM
 

  Is this guy trying to argue we've been in a bear cycle for the last 25 years and are now bottoming out to create a bull cycle? This guys stupid....just saying.

 
 
Dave
Walton, IN
12/1/2016 08:12 AM
 

  What the heck is this guy talking about? Correct me if I'm wrong but didn't the bull cycle in commodities start about 10-15 years ago, depending on who you ask, peaking about 4 years ago? Mainly on inflation concerns, China getting into the 21st century, and ethanol? Weather paid an important role also about 5 years ago also. So, it would seem to me this is merely a correction in a now cyclical bear market. Supplies are one good year away in corn in becoming a horrible burden to the market and beans may be the same. There is no shortness of wheat world wide so where's the new demand going to come from? Is it going to be funny money from funds that drive it up for no damn reason? I'll tell you this, the law of economics have not been repealed, sooner or later we will come crashing down to reality and farmers better make sure the ship don't sink. For this "expert" to claim the bad times are over after only 3 years of lower prices is silly.

 
 

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