By Archie Flanders, Agricultural Economist
The March 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. In the beginning weeks of 2017, new crop corn bid prices have been strengthening towards $3.80/bu. New crop soybean bid prices have been weakening towards $10.10/bu. Expectations are for increased 2017 soybean acreage and decreased corn acreage which would result in continued weakening of soybean prices as spring planting dates approach. Increased animal units on feed will stimulate demand to restore long-term balance to corn and soybean supplies. Large rice supplies are maintaining downward price pressure for long-grain and medium\short-grain rice. Rice is for food consumption and will require acreage reductions to restore supply and demand balance.
More current supply and demand information: March-2017