Commodity markets have been far from “normal” in recent years. But, if typical supply and demand factors return to the markets, what will happen to the corn and soybean markets over the next 10 years?
A new report by ag economists at North Dakota State University sheds some light on that question.
Over the course of the next decade, world demand for corn and beans will remain strong helped by a weaker dollar against other currencies, summarizes Stu Ellis, editor of the farm gate blog. The United States will have the most corn to export, but ethanol and feed will require large domestic supplies.
The ethanol industry will grow, but will be held back by lower profitability, he adds. Chinese demand for corn and beans will continue to grow, but most of the demand will be supplied by South America. Corn prices will increase slightly, but soybean prices will remain flat.
Source: the farm gate blog