FAPRI Warns Of Potential Prolonged Slide In Cash Grain Prices

Dr Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri, presents projections from the group’s 2019 annual outlook at a conference hosted at the Bradford Research Center east of Columbia. (Photo by Kyle Hill, Alpha Ag Network)

The annual Baseline Report from the University of Missouri’s Food and Agricultural Policy Research Institute is projecting a decrease in cash prices for the three major grain crops over the next decade, even with USDA forecasting a decline in corn and wheat acreage. Highlights of the report were presented Wednesday at FAPRI’s Abner Womack Missouri Ag Outlook Conference in Columbia. Director Dr Pat Westhoff…

Central MO Info · 24 0404 FAPRI Director Pat Westhoff on Baseline Outlook cut 1

Westhoff says wheat production overseas is contributing to significant downward pressure on that crop.

Central MO Info · 24 0404 FAPRI Director Pat Westhoff on Outlook for Wheat

FAPRI’s baseline projection is calling for wheat prices to tumble over a dollar per bushel for next year’s crop, averaging $6.13. That’s followed by an average price of $5.41 per bushel over the following decade. Soybeans could see a larger drop, falling a $1.95 to $10.73 per bushel this fall, then leveling off at an average of $10.57 per bushel. Corn prices are predicted to fall 39 cents per bushel to an average of $4.39 for the next marketing year, then slide further to an average of $4.08 during the next decade.