Long Term Ag Outlook Strengthens
After a volatile June and early July in the commodity markets, agricultural outlooks turned higher in the rest of July. The Purdue University/CME Group Ag Economy Barometer turned higher, coming in at 112 in July, up from 104 in June and 97 in May. The improved outlook among producers in the survey came despite a tumble in commodity prices in June and early July. While their future outlooks improved, their feelings about current conditions declined to a value of 93, down from a more optimistic number of 98 in June. 69 percent of respondents expect tough financial times in the next year, which is consistent with the previous two months. However, the number of respondents that expect tough financial times in agriculture over the next five years dropped to 40 percent, lower than in previous months. Producers also expect higher commodity prices and rising farmland values in the next year. Purdue/CME Group experts say producers improving long-term outlooks likely come from lower costs, due in part to lower fertilizer prices and cash rents.
From the National Association of Farm Broadcasting news service.