ENFIELD, Conn. — Farm Credit East recently released its February Knowledge Exchange Partner. This month’s issue looks at current economic indicators affecting the green industry and the grain and oilseed industries, and provides 2017 outlooks from industry experts.
In the green industry, the housing market – a prime influencer of derived demand for green industry products and services – continues to be a bright spot. This outlook provided by Dr. Charlie Hall of Texas A&M University, states there are few red flags among current economic indicators to suspect any surprises in economic performance in the first part of 2017.
In the grain and oilseed industry, a comparison of global average grain and oilseed yields to the long-term trend helps forecast prices. This trend shows that every time between 2009 and 2015 the world average yield exceeded the long-term trend, U.S. marketing year average prices for corn, soybeans and wheat declined from the previous year. Similarly, when the world average yield was at or below the long-term trend, prices rose. With this trend as his basis, Patrick Westhoff, Ph.D., University of Missouri, forecasts wheat and corn prices will be lower for the 2016/17 marketing year and, in an exception to the rule, soybean prices will be up slightly.
Farm Credit East’s Knowledge Exchange Partner is a monthly e-newsletter that provides information on current issues and industry trends. To view the February issue, as well as past months’ issues, click here.
—Farm Credit East
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