Dr. Chad Hart told growers at the American Farm Bureau Federation’s 94th Annual Meeting that weather and the potential for a rebound in demand are the top two factors that will influence crop markets in 2013. During a session on the outlook for corn, soybeans, wheat and cotton - the associate professor and extension economist at Iowa State University said prices for corn and soybeans will remain historically high. According to Hart - we aren’t done feeling the effects of the weather system that’s hit us the past couple of years.
Hart said the decline in corn demand had to happen. He says the question for 2013 is - can we move forward? He said a slight increase in demand for corn for feed suggests we can push past the pinch of high prices. He added that better-than-expected yields and the moderating of prices bode well for upping demand. Hart said the corn export market has been cut in half because of higher prices - but climbing prices have had little effect on international demand for soybeans.
Cotton prices - according to Hart - are depressed largely because of the large reserve of cotton. Until China’s cotton market moves - he said it will be hard for cotton to gain upside traction.