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Agricultural Programs
16
May
2016
Supply and demand for field crops – May 2016
Author: Archie Flanders, Extension Economist

By Archie Flanders, Agricultural Economist

The primary components of market conditions that determine prices for U.S. field crops are the supply and demand situation for each crop and the value of the dollar. Supply and demand conditions are indicated by stocks-to-use ratios which are reported monthly by U.S.D.A. Crop prices attempt to ration supply with anticipated demand to achieve equilibrium stocks-to-use throughout the marketing year. As the marketing year advances, projected ending stocks become projected beginning stocks for the next marketing year and impact price expectations for spring-planted crops. The May report has the first U.S.D.A. forecasts for crops to be harvested in 2016. Click here for more current supply and demand information for May 2016.


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