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Bob Hoff Ag economist sees shift in market paradigm
by Bob Hoff, click here for bio

Program: Farm and Ranch Report
Date: December 30, 2011

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Farm and Ranch December 30, 2011 University of Illinois Ag Economist Darrel Good says there has been tremendous weakness in grain futures since August. Good talks about what may lie ahead.

Good: “And I think as we go into the first of the year, now we will be looking to the January 12th USDA reports. Final production estimates for 2011 crops, December stocks reports, winter wheat seeding report, and of course we will be a little further into the South American growing season at that points. I think we are going to have to see some friendly news to turn this price pattern around because at this juncture I think the market is also beginning to think we will get a few more acres planted and harvested next year, corn and soybeans, a return to trend yields. Now we are looking at pretty big crops next year and the potential to further build our stocks of those crops. So, I think the fundamentals have shifted towards coming out of this shortage mentality a little bit, and tight stocks, and moving into a period where we can potentially see some recovery in inventory. IO think there is kind of a paradigm shift here from shortage to maybe we are going into a period of more abundant supplies.”

USDA recently reported the world’s wheat crop this year was record large.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.

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