Low prices could stick around for the next few years. Researchers at the University of Missouri say large global stocks are helping suppress prices across the board.
“Yeah, we’ve had a lot of supplies globally right now. And unless there’s something, a big change of the demand side of the picture, ordinary weather conditions around the world the next several years would lead to continue large supplies. Obviously, we’re going to have some weather shocks the like in the near term, so we don’t know which year will be a good year, which will be might be a bad year. On average, we think current prices are more or less reflective of the current market situation,” said Dr. Pat Westhoff.
Westhoff says considering the current situation, there is not real need for farmers to consider acreage shifts for next year.
Seasonal beef production gains may moderate retail price pressure, while tight cattle supplies continue supporting producer values.
Higher rail fuel surcharges could add cost pressure even as wheat production falls and grain movement remains active.
The Washington State Tree Fruit Association says crop quality looks promising despite ongoing drought conditions.
New Fed surveys show farmland values remain historically high, though some Upper Midwest markets are beginning to soften.
Fred Seamon with CME Group joins us to discuss the latest Ag Economy Barometer and the key economic pressures shaping producer sentiment in May.
IDA Texas’s Cooper Little discusses producer response to New World Screwworm in Texas, ongoing coordination with animal health officials, and the steps being taken to manage and protect livestock movement across the region.
