An updated outlook on commodity prices and farm income for the next decade is out from the University of Missouri’s Food and Agricultural Policy Research Institute. Director Pat Westhoff says commodity prices are expected to remain lower because of the economic slowdown surrounding coronavirus.
FAPRI’s update followed USDA reports on farm income levels and potential crop production for this year. Westhoff says several macroeconomic factors are also coming into play.
The updated FAPRI outlook projects the average price of corn this year to drop to $3.24 a bushel, before rebounding to $3.39 next year. However, it might not return to last year’s level of $3.60 per bushel for six years. Soybeans have a projected average of $8.24 per bushel this year, before rebounding on anticipated export demand to $8.69 per bushel next year and over $9 in 2022.