During the American Farm Bureau Federation (AFBF) convention in Phoenix earlier this week, members were told to expect another year of soft grain prices unless there’s a major disruption in outside factors, such as weather or foreign markets.
Dr. Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri, says prices will continue to be below average, and perhaps even lower than 2016.
2017 could provide opportunities in some aspects of agriculture, especially proteins, according to Bob Young, chief economist with AFBF.
Young talked to AgriTalk host Mike Adams on his outlook for the year ahead.
“2017 might not be better, but at least sideways,” said Young. “Soybean oil prices are in the mid 30’s, which historically if I talked to you about 35 cent oil prices, you would have said, ‘No way.’ There are a few spots [one] could say SOMETHING.”
Young says the U.S. must constantly increase world demand for agricultural products, but that could be impacted by the strength of the U.S. dollar.
“Our economy must look like one of the better economies [around the world], so it’s not just interest rate moves,” said Young. “There’s potential for trade conflict as the administration turns over. The dollar has to continue to be the haven currency.”
Listen to Young discuss inflation, demand growth and land prices on AgriTalk below.