COLUMBIA, MO – If projections from University of Missouri economists are correct, lower prices are coming for corn, soybeans, and hogs, but higher prices for cattle.
According to the latest 2021 Baseline Update from the Food and Agriculture Policy Research Institute (FAPRI), strong demand from China this year has helped propel corn prices to an expected $5.34 per bushel this fall – which would be a record high. Next year, however, a rebound in production for Brazil combined with reduced demand from China will temper overall exports for U.S. growers, though FAPRI suggests corn prices above $4 for the foreseeable future.
Soybeans will face some similar issues and the $13.18 per bushel harvest price this year should moderate back to the $11 range for the next five years.
Following sharp prices in both hogs and poultry this year, export growth will slow and domestic demand will level off leading to lower prices beginning in 2022.
Though the cattle industry is facing a contracting herd and beef prices are already strong, FAPRI expects the market to continue to rise in 2022 as demand remains in place, both domestically and globally.
(SOURCE: All Ag News)