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Market insights for 2020

An agricultural expert says growers will likely see lower prices in 2020.

Seth Meyer is the associate director of the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri and immediate past chairman of the USDA’s World Agricultural Outlook Board.

“If we return to trend yields and normal planting progress, we’re going to see both lower corn and soybean areas- maybe $3.60-$3.65 for corn and $8.60 or so for soybeans,” he says. “So, lower than they are today as supplies expand.”

Meyer tells Brownfield his outlook is based on if the trade climate continues as it has this year.

“We had unusual planting weather this year, it cut acreage that helped keep supplies constrained and if we go to more normal planting progress next year we’re going to have bigger supplies because those acres are going to be planted,” he says. “I think it is hard to envision short of some trade deal that we won’t see larger stocks for a bunch of commodities.”

He says growers should be prepared for some price volatility and take opportunities as they come along.  

Brownfield spoke to Meyer at the National Grain and Feed Association’s Country Elevator Conference in Indianapolis.

Audio: Seth Meyer, Food and Agricultural Policy Research Institute