Conditions seem right so far for production
With a whirlwind of trade activity as a backdrop, commodity market gyrations have made unsettling times for grain producers across the nation, but there’s hope those are leveling, according to a Texas A&M AgriLife Extension Service economist.
“Trade is a powerful tool,” said Mark Welch, Ph.D., AgriLife Extension grain marketing economist, College Station. His comments came as part of the 2020 Blackland Income Growth Conference in Waco.
For consumers, the outlook is positive with a steady grain supply projected and no immediate threat to corn food products.
For corn producers, conditions appear right for a large supply of corn in 2020. If that happens, prices are projected to stay relatively flat to lower, around $3.50 a bushel, with little prospect of $5-a-bushel corn in the immediate future.
“The U.S. is the No. 1 producer, user and exporter of corn,” Welch said. “We are the price setter. The world has been producing around 44 million bushels of corn over the past few years and consumption trends worldwide are on the rise.
“It only takes one problem in one major producing area to create price volatility. Globally, we are not looking at a time of overabundant supply of corn.”