Trade disputes with China and other foreign markets have taken their toll on the updated projections for average farm prices over the next year, as forecast by University of Missouri economists. Pat Westhoff says the baseline update from the Food and Agriculture Policy Research Institute has reduced the average price of soybeans by 65 cents a bushels from their initial projection in March.
Westhoff says the trade disputes will take a toll on projected planted acres for next year.
Despite the notably higher acreage, corn’s average price for the next year is forecast higher by a nickel to $3.62 a bushel while wheat is up 23 cents to $5.12. Tariffs and larger inventories have also impact the hog forecast, with the average price down over $6 per hundredweight to just $41.33.
FAPRI Director Pat Westhoff was our guest Tuesday afternoon on Ag Insight: