By Archie Flanders, Agricultural Economist
The February 2017 WASDE report for the supply and demand situation of field crops maintains market fundamentals that are resulting in expectations of low commodity prices for the upcoming 2017 crop year. Supplies have historical cycles, and low crop price projections are following corresponding trends of markets with excess supply. Large rice supplies are maintaining downward price pressure for long-grain and medium\short-grain rice. Expectations are for increased 2017 soybean acreage and less corn acreage which would result in weaker soybean prices as spring planting dates approach. Current new crop soybean prices greater than $10.25/bu. are likely much more favorable than 2017 harvest period prices. Increased animal units on feed will stimulate demand to restore long-term balance to corn and soybean supplies. Rice is for food consumption and will require acreage reductions to restore supply and demand balance.