AFBF Increased Markets Will Address Ag Surplus

Thanks to lower supply estimates from May, the USDA recently adjusted prices for corn and soybeans higher.  But, as American Farm Bureau Federation chief economist Bob Young points out supplies still remain high for most commodities.

“We’ve got more corn, we’ve got more beans, we’ve got more wheat we’ve got lots of cotton just lots of supply of lots of product all over the country.”

And when it comes to corn and wheat, the USDA is forecasting year-over-year increases at ending stalks for June supply and demand estimates.  Young says the answer is increasing demand growth, not only domestically, but overseas as well.  However, Young notes,

“I think domestically, you’re kind of hard pressed to talk about much demand expansion, so you do have to look to those international markets those trade markets.“

Young said increased global production and a strong U.S. dollar has fostered challenges to increase ag exports which is why he believes trade deals, like TPP are so important to U.S. agriculture.

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