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Hurt: prices similar to last year despite challenging year

Purdue Ag Economist Chris Hurt says despite this year’s weather challenges and lower production estimates, prices are very similar to last year.

He says the season-average corn price remains the same…  

“Last year’s 2018 crop had $3.60 marketing year average, and for the 2019 crop their projection is $3.60,” he says. “We went through all these production concerns and we end up with the same price.”

Hurt says the season average price for soybeans is forecasted lower…

“Soybeans were $8.50 for the 2018 crop and now for the 2019 crop their projection is $8.40,” he says. “So, I think farmers are not only scratching their head but they’re asking if this could really be the case and why that could be.”

He says trade disputes and weak demand have negatively impacted prices.

“Back in May I think many of us in agriculture thought we would be settled with China at this point, so I think it is really reflecting the reality of the demand side,” he says. “The demand side has been very weak and could continue to be very weak for another year or longer.”  

Hurt spoke to Brownfield after a Purdue panel yesterday at the Indiana State Fair.

Audio: Chris Hurt, Purdue University