Stabilization of the economy is what it will take for U.S. grain and oilseed farmers to continue to expect higher prices for their crops. Higher is a relative term, but according to University of Illinois Extension Ag Economist Darrel Good, it generally means a post-harvest rally off the current lows. Good admits it might take seven or eight months for that rally to occur and says it depends largely on the health of the U.S. economy.
“If in fact the worst is over in the stock market and in some of the employment numbers, the housing market, and we see energy prices stabilize and recover somewhat, then I think corn and soybean prices will come along with them. So in the case of corn can we see seventy-five cents or even a dollar recovery in prices? Perhaps. Soybeans similarly a dollar to a dollar and a half recovery from the harvest lows would not be unusual.”
Check out the rest of the article at Hoosier Ag Today.