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More demand needed to help with commodity prices
Lower corn and soybean prices are attracting some new export demand, but an extension economist at the University of Missouri says there hasn’t been as much demand as expected yet, especially from one key buyer.
Ben Brown says China still isn’t buying much from the United States and if that continues, it will be a concern for price.
“If we continue on this path, we’re probably looking at soybean prices moving another five to six percent lower, somewhere in that range, before we start finding demand that stabilizes prices. Some of the estimates of the U.S. crop size coming out of the last week are very bearish to soybean prices.”
Brown says farmers still have old crop supplies that need to move to market, along with the crop that gets harvested this fall.
“Farmers should be thinking about making some sales for the new crop. At least, put a risk management plan in place, knowing what you should do, when.”
Brownfield interviewed Brown at the Missouri Farm Bureau’s Commodity Conference.