The run is not over
Farm and Ranch February 4, 2011 Farmers attending the Pacific Northwest Farm Forum in Spokane this week got an optimistic economic outlook. It came from John Mitchell of M & H Economic Consultants, who previously was an economist for U.S. Bancorp. Mitchell: “U.S. white wheat exports, USDA expects a significant increase I export. They expect wheat prices 13% higher this crop year. Beef production is expected to decline. We have had herd liquidation. Beef supplies expected to go down about 2.5% with an accompanied increase in prices. Again, this is happening against the background of a U.S. economy that is recovering along with, presumably, the restaurant sector. What one is left with is a run that is not over. One can be optimistic about a fair number of sectors this year in a recovery, but you had a good year last, likely to have a good year this year.” And as long as growth continues in overseas countries like China and India, Mitchell says demand for food will rise, which should keep upward pressure on commodity prices, at least for a while. Negatives Mitchell pointed to were the federal budget and the reliance of the U.S. on foreigners to finance deficits. Mitchell: “We haven’t had any trouble. But nobody knows when that is going to end or how it is going to end.” I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net. ?
