Economists at Michigan State University think the price of soybean and corn is good

Introduction: Jim hilker, an agricultural economist at Michigan State University, said he was "more bullish on the price of soybean and corn than the current market atmosphere." "Hilker's view is based on a more comprehensive sense that US corn and soybean production will fall below the current USDA forecast due to the dry and hot weather in many areas this month Here's the economist's analysis of the market Corn: hilker's preference for the supply-demand relationship in the corn market "has changed fundamentally" from the last field survey conducted by the U.S Department of agriculture up to August 1 Although the USDA's August report estimated corn yield at 133.9 per acre - which means 9.266 billion bushels of corn - hilker felt that corn yield would not exceed 13.2 bushels per acre, with 9.135 billion bushels of corn Hilker felt that corn production in a region would be slightly lower than the U.S Department of agriculture's estimate, that is, Michigan's corn yield per acre in the U.S Department of agriculture's report was 111 bushels per acre, 13 bushels lower than last year "If there was rain on August 6, that's a pretty good estimate, but we didn't," hilker said "Recent rainfall still helps to prevent a decline in production in many central Michigan regions, but I believe that for most regions, I personally think rainfall is too late to really work on the recovery of production "Hilker is also optimistic about corn demand, especially its use in ethanol "My final inventory estimate for corn is 1.27 billion bushels, with a utilization rate of 12.9%," the economist said "This will result in annual corn prices around $2.20 (/ bushel) "Hilker recommends that manufacturers wait until CBOT's December contract corn price goes up" $2.50 before considering forward contract operation, especially for the storage part of the farm "Soybeans: hilker says its outlook for soybeans is the same as corn "I don't feel that there is much difference According to the report of crop grade on August 1, the excellent rate of soybean has not increased "Numbers will imply everything and prices will go up," he said Hilker estimates that the U.S soybean yield will be 37.5 bushels / acre, which is much lower than the 38.7 bushels / acre estimated by the U.S Department of agriculture at the beginning of the month, making the total U.S soybean yield only 2.779 billion bushels World demand will remain very strong, and hilker expects us soybean end of term stocks to be less than 220 million bushels "If that happens, we will be able to sell soybeans above USDA protection prices ($5.26 per bushel)," he said But hilker's bullish attitude towards soybeans is not as strong as corn's "The problem is that the recent rainfall is still good for the recovery of crop growth There is also a significant increase in South American production, especially before spring sowing, CBOT market prices in the United States rebounded significantly." He said.