The Agriculture Department’s Prospective Plantings Report released Friday (April 01, 2016) suggests low prices for corn and rice will continue, extending the current, two-year farm downturn through the end of 2016, if not beyond.
“The report really highlights how challenging the market is right now for major crops,” said John Anderson, deputy chief economist at AFBF. “We currently have adequate supplies both in the U.S. and globally in these commodities. It doesn’t look as though that will change. If we have normal yields, that supply side pressure will not ease up much.”
The 93.6 million acre prospective plantings figure for corn is up from 88.6 million acres planted last year, or close to three times the expected increase of 2 million acres.
AFBF news release
USDA Prospective Plantings Report Bearish for Many Row-Crop Farmers dtd 04/04/2016
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