By Archie Flanders, Agricultural Economist
Beginnings of the fourth consecutive year of unfavorable commodity prices bring the question of conditions necessary for improved prices and the outlook for these conditions. Although accurate forecasting of commodity prices is an impossible challenge, field crop prices establish characteristics that provide insights for expectations that potentially impact market conditions. The foremost characteristic is that crop prices follow a long-term equilibrium with supply and demand such that surplus supply results in less than average prices and short supply results in greater than average prices.
More information for crop price conditions: April Price Outlook