Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
    
   
   
   
   
   
   
   

Agricultural News


Producersí Future Outlook Dims as Attention Shifts Toward 2017

Tue, 01 Nov 2016 20:14:13 CDT

Producersí Future Outlook Dims as Attention Shifts Toward 2017 The Purdue/CME Group Ag Economy Barometer turned lower in October, dropping to an index reading of 92, the lowest reading since last March. Thatís also the lowest index since data collection began back in October of 2015. Producersí expectations of the long-term health of the ag economy dove in October, with the Index of Future Expectations dropping to 95 in October, down from 109 in September and the July peak of 121.


A key consideration regarding future prospects for the U.S agricultural economy is the direction crop prices will move during the upcoming year. To better measure producersí crop-price outlook, they were queried regarding their expectations for movement in July 2017 Chicago Board of Trade (CBOT) futures prices for corn and soybeans between October 2016 and summer 2017 (Figure 4). More specifically, producers were asked if they thought: 1) July corn futures prices would exceed $4.00 per bushel, 2) July corn futures prices would fall below $3.00 per bushel, 3) July soybean futures prices would exceed $10.00 per bushel, and 4) July soybean futures prices would fall below $8.00 per bushel.


One-third of producers surveyed said they expect July 2017 CBOT corn futures prices to exceed $4.00 per bushel between October 2016 and next summer and a similar share of respondents (30 percent) expect July 2017 soybean futures prices to exceed $10.00 per bushel. Crop budgets for both of these crops suggest that futures prices at these levels for the 2016 crop would allow many Midwestern cropping operations to approach breakeven, especially given that many farms are harvesting above-average yields this fall. Farmers with this price outlook are likely those with an optimistic perspective regarding future financial conditions in the agricultural sector.


In contrast to the optimism expressed by some survey respondents, a slightly smaller share of producers think a much more negative corn and soybean price scenario is likely. Twenty-seven percent of survey respondents expect corn prices to fall below $3.00 per bushel and 25 percent of respondents expect soybean prices to fall below $8.00 per bushel. Corn and soybean prices at these levels are below breakeven for the vast majority of U.S. farm operations and farmers with this price outlook are likely those with the most dire outlook regarding future financial conditions in agriculture.


Producers also plan to make management changes next year because of the economy. 46 percent of respondents plan to lower fertilizer rates and 35 percent plan to adjust trait packages in their seed varieties.


Click here to view the complete report released on November first by Purdue and the CME Group.




   






 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Friday, January 17, 2020  Sat, 18 Jan 2020 10:35:51 CST
  • Friday, January 17, 2020 Market Wrap-Up with Justin Lewis  Fri, 17 Jan 2020 15:03:22 CST
  • Michael Peters of Okarche Named Secretary-Treasurer for U.S. Wheat Associates   Fri, 17 Jan 2020 13:32:52 CST
  • Cattle Industry Will Provide Watchful Eye as US and Chinese Trade Officials Work to End Non Scientific Trade Barriers for US Beef  Fri, 17 Jan 2020 12:26:35 CST
  • A Positive Week for the Beef Industry Concerning Trade   Fri, 17 Jan 2020 11:36:50 CST
  • Alltech Launches Relief Effort for Australian Farmers  Fri, 17 Jan 2020 09:06:38 CST
  • Friday Preopening Market Update with Dave Lanning  Fri, 17 Jan 2020 08:31:09 CST
  • Atop the RON Rural Soapbox - Former Secretary John Block  Fri, 17 Jan 2020 08:30:09 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.