USDA Economist Not Optimistic About 2017 Rebound

There is a hope that 2017 will hold a rebound in prices for many commodities, and a recent report even indicated that might be possible, but don’t count USDA Economist Rob Johannson as a believer.

Johannson said he sees prices remaining flat or even declining.

“What we’re seeing right now is that we have built stocks globally due to the last four years of production exceeding demand.”

Which means there’s a slim chance for a price recovery, though Johannson thinks soybeans might see a bump.

Johannson groups nearly all the other commodities together when he looks at the 2017 picture.

“Until we see demand catch up or we see a drought in some region of the globe hitting production patterns, we’re likely to see this pattern of relatively flat prices.”

What could help beyond next year is that U.S. producers will take some land out of production, but it’s too early to tell if that will have an impact.