Economists warn of low price era for crops
However, ethanol's demand for corn has flatlined. Roberts said 2013 saw the first decent corn yields in four years and that means lower prices. He thinks more corn will be added back into feed rations, and exports will increase.
Domestic demand is flat for soybeans, but exports are very strong, from China, Africa and the rest of the developing world.
As for wheat, he said the United States has been using more than it produced lately, which has positively ate away at wheat stocks.
The U.S. cotton sector is expected to grow according to Sharon Johnson, senior cotton specialist for KCG Futures in Atlanta. Cotton supplies are at a 29-year low. Worldwide, Johnson predicted 2014 cotton production will mirror consumption.
China, a major player in the cotton market, is rebuilding its state reserves to control prices. The U.S. supply will expand requiring prices to be more competitive to secure exports, especially if Chinese imports shrink.
- Granular completes nationwide beta testing; signs first customers
- Concerns grow over damage to EU wheat crop quality
- Davis Equipment is celebrating 50 years in business
- Ag futures ended the week in decidedly mixed fashion
- Pinnacle Agriculture, Tecomate Wildlife form alliance
- Ag markets remained quite mixed at noon Friday