Commodity prices have been challenging, but according to recent projections they likely won’t get any worse. The University of Illinois worked with several economic outlook groups (see the list below) to give farmers an idea of where prices might be headed.
From 2014 to 2016 marketing years, corn averaged $3.50 per bushel, and soybeans averaged $9.50 per bushel. The next five years of projections suggest similar price levels will continue, according to University of Illinois commentary. “History indicates actual prices can vary considerably from forecasted prices.”
Even though prices can vary from the forecast, University of Illinois economists suggest it’s best to make budget decisions based on the mid-$3 range for corn and the mid-$9 range for soybeans. Develop a marketing plan that allows you to be nimble, and be on the lookout for weather or trade events that encourage prices to improve, even for just a bit.