2017 ended with corn and soybean prices below where most producers would like to see them. However, Doug Werling, with Bower Trading, says 2018 will be better, “I am very optimistic about 2018 for all commodities in general; and, eventually, it will get around to grains.” He told HAT growth will be a major market factor in the coming year, “We are going to see a lot of demand growth in many emerging economies. This will lead to demand growth in things like coffee, cocoa, and eventually coarse grains.” He says demand growth will average between 3% and 5% in 2018.
Werling says, if we have a drop in production, prices will move up sharply, but, even if we don’t, the trend in 2018 will be up, “Overall, between now and the end of this year, we are going to see improvement; and we will begin to feel better about ourselves, even if we don’t have a weather event that cuts production.”
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