Concerns over agricultural trade weighed heavily on producers’ current and future expectations of the agricultural economy. As a result, the Purdue/CME Group Ag Economy Barometer tumbled in July, dropping 26 points to a reading of 117.
To paint a further bleak picture, the Index of Current Conditions fell from 138 in June down to 99, while the Index of Future Conditions fell from 146 in June to 126 in July. This month’s decline is the largest drop in the three-year history of the producer survey.
Producers were much more negative in their economic forecasts over the next 12 months. When asked if they expect good economic times or bad in the next 12 months, 61 percent producers forecast bad economic times ahead. That’s a 15 point jump up from the June reading. Just 19 percent of producers expect good economic times in the next 12 months, down seven points from June.
The percentage of producers saying it’s not a good time for large farm investments rose to 73 percent in July, up 13 points over the previous month.
Producers were also decidedly negative when it comes to the future trading ranges of both corn and soybean prices.
Source: National Association of Farm Broadcasting News Service.