Prognosticators Optimistic For Low-Cost Corn And Pricey Cattle

Barring unforeseen wrecks, economists think corn could stay low, and cattle relatively high, until 2020.

I've been working this week on a roundup of some of the top economic consultants for my November edition of Beef Producer and decided to share some of their thoughts with you in my blog.

Most of these folks think corn and other feedstuffs could stay comparatively low-priced, and that cattle should stay relatively high, until near the end of the decade.

Dan Basse of AgResource Co. in Chicago said recently that corn prices should be in the range of $3-4/bu. for seven years or possibly more. Basse also said fed-cattle prices should peak this fall but are likely to remain strong for 5-7 years.

Basse said the corn price will be depressed for several years by a combination of a mature biofuel market, lower demand from the livestock sector, and the lowest U.S. export share on record for a non-drought year -- that's assuming no more droughts.

To read Newport's entire column, click here.

 

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