The U.S. grain price outlook and crop demand won’t see a lot of major changes in the coming year. That prediction comes from Dr. Pat Westhoff, Director of the Food and Ag Policy Research Institute at the University of Missouri. Based on trends, Westhoff says prices will continue to be below average in 2017-2018 and be lower than 2016. Yields for grains and oilseeds increased by one percent per year since 1980, roughly the same rate as the global population growth. The harvested area for wheat, corn, and soybeans has increased by 17 percent from 2002-2014 and world per capita consumption increased 16 percent. He says an increase in ethanol production and Chinese per capita demand had the greatest effect on grains and oilseed markets. Biofuels growth has slowed and increasing Chinese demand is becoming doubtful, so grain and oilseed markets will continue along their current trends for those reasons.
From the National Association of Farm Broadcasting news service.