A drought in Russia and reduced global wheat production along with shifts in U.S. crop production affect the entire U.S. agricultural outlook. Changes in one sector ripple through all farm segments.
A mid-year update of the 2010 U.S. agricultural baseline shows increased wheat exports, moderate rises in grain prices and modest recovery in meat and dairy prices paid to farmers.
The baseline revision comes following release of new USDA data, says Scott Gerlt, crop analyst with the University of Missouri Food and Agricultural Policy Research Institute (MU FAPRI)
For dairy, milk prices have not increased as much as FAPRI projected earlier this year. “A reason for slower price recovery is that cow numbers continue to build. We have not seen a cutback in milk supply,” Scott Brown, MU FAPRI livestock economist says.
The all-milk-price average was projected at $16.56 for 2010 and for $17 per hundredweight in 2011
Source: University of Missouri Food and Agricultural Policy Research Institute