An updated outlook on commodity prices and farm income for the next decade is out from the University of Missouri’s Food and Agricultural Policy Research Institute. Director Pat Westhoff says commodity prices are expected to remain lower because of the economic slowdown surrounding coronavirus.
FAPRI’s update followed USDA reports on farm income levels and potential crop production for this year. Westhoff says several macroeconomic factors are also coming into play.
The updated FAPRI outlook projects the average price of corn this year to drop to three-24 a bushel, before rebounding to three-39 next year. However, it might not return to last year’s level of three-60 per bushel for six years. Soybeans have a projected average of eight-24 per bushel this year, before rebounding on anticipated export demand to eight-69 per bushel next year and over nine dollars in 2022.