Pat Hill DTN Markets Editor
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Monday 08/23/10
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FAPRI Ups Price Forecasts
Stronger export demand for U.S. wheat and corn hasn't gone unnoticed by economists at the U. of Missouri's ag think tank.
The average wheat price this current marketing year will be $5.10, corn prices for this fall's crop will average $3.68 and soybean prices will average $9.35, according to revised forecasts from FAPRI, the University of Missouri Food and Agricultural Policy Research Institute.
Here's how those projections compare to the projections in the March FAPRI baseline, and USDA's August supply and demand tables:
FAPRI, USDA Price Projections
Corn Soybeans Wheat
FAPRI March 2010 $3.72 $8.89 $4.61
USDA August 2010 $3.50-$4.10 $8.50-$10 $4.70-$5.50
FAPRI August 2010 $3.68 $9.35 $5.10
FAPRI's new projection assumes biofuel credits and tariffs all expire on schedule. FAPRI said that assumption is not meant as "a judgment about what is or is not likely to occur, but simply an interpretation of what constitutes 'current policy.'"
On the livestock side, FAPRI says prices for meat and dairy products "have recovered to a level that allows for most livestock and dairy producers to cover production costs and some sectors are now profitable." That's due in part to reviving consumer demand but more to slower production growth, FAPRI stated.
The revised baseline shows hog prices average in 2011 at $56.39, up from $54.59 per hundredweight in 2010; fed cattle prices are projected at $98.50 per cwt in 2011, reaching $105.65 in 2015.
Find the whole FAPRI update at http://bit.ly/…
Posted at 8:26AM CDT 08/23/10 by Pat Hill
Bio | Email
Monday 08/23/10
Print Email
FAPRI Ups Price Forecasts
Stronger export demand for U.S. wheat and corn hasn't gone unnoticed by economists at the U. of Missouri's ag think tank.
The average wheat price this current marketing year will be $5.10, corn prices for this fall's crop will average $3.68 and soybean prices will average $9.35, according to revised forecasts from FAPRI, the University of Missouri Food and Agricultural Policy Research Institute.
Here's how those projections compare to the projections in the March FAPRI baseline, and USDA's August supply and demand tables:
FAPRI, USDA Price Projections
Corn Soybeans Wheat
FAPRI March 2010 $3.72 $8.89 $4.61
USDA August 2010 $3.50-$4.10 $8.50-$10 $4.70-$5.50
FAPRI August 2010 $3.68 $9.35 $5.10
FAPRI's new projection assumes biofuel credits and tariffs all expire on schedule. FAPRI said that assumption is not meant as "a judgment about what is or is not likely to occur, but simply an interpretation of what constitutes 'current policy.'"
On the livestock side, FAPRI says prices for meat and dairy products "have recovered to a level that allows for most livestock and dairy producers to cover production costs and some sectors are now profitable." That's due in part to reviving consumer demand but more to slower production growth, FAPRI stated.
The revised baseline shows hog prices average in 2011 at $56.39, up from $54.59 per hundredweight in 2010; fed cattle prices are projected at $98.50 per cwt in 2011, reaching $105.65 in 2015.
Find the whole FAPRI update at http://bit.ly/…
Posted at 8:26AM CDT 08/23/10 by Pat Hill