Very different crop market outlooks are presented on pages two and three of The Producer this week.
Analysts at the Cereals North America conference in Winnipeg looked at over-supplied markets and slowing demand growth for biofuel and predicted that farmers should get prepared for years of disappointing prices for major crops.
The other forecast is based on a technical analysis of price charts. Darin Newsom, a DTN analyst, noted last week’s crop price rally pushed corn above technical resistance points, marking what could be a major turning point in the long price slide since 2012 and the start of a long grind higher.
The two outlooks seem at odds, but both could prove correct.
A low could be in and prices could rise but remain well below the strong levels of recent years, challenging farmers’ profitability.
Only time will tell.
