Iowa State University Extension economist and grain market specialist Dr. Chad Hart told growers at the American Farm Bureau Federation’s 94th Annual Meeting that weather and the potential for a rebound in demand are the top two factors that will influence crop markets in 2013.
During a session on the outlook for corn, soybeans, wheat and cotton, Hart said prices for corn and soybeans will remain historically high. The decline in corn demand, he says, had to happen. A slight increase in demand for corn for feed suggests agriculture can push past the pinch of high prices, and Hart added that better-than-expected yields and the moderating of prices bode well for upping demand.
Hart also said the corn export market has been cut in half because of higher prices, but climbing prices have had little effect on international demand for soybeans, as current export numbers show.