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Upside potential for 2016-17 markets

An ag economist says price projections for 2016-2017 corn and soybeans have room for growth.

Darrel Good with the University of Illinois tells Brownfield demand for overall U.S. corn and soybeans the past two years has been weak. He says if slow economic growth and plentiful global crops continue, he doesn’t see much downside risk in the market.  “We would see corn prices perhaps moving up into the high $3 average range next year, $3.75 or so, soybeans we would see about $9.50 as an average price.”

If demand for U.S. grain does improve, Good says 2017 prices could be surprisingly high. Factors that could improve demand he says include global production issues and a weaker dollar.  “But, the big one is can the U.S. and world economies recover from the really slow rate of economic growth that we’ve experienced for the last two to three years?”

Good says if 2016 turns into a weather market, farmers might want to consider selling some of their 2017 crop as well.

AUDIO: Interview with Darrel Good