Strong Export Demand Could Impact Corn Market

An ag economist at Purdue University says export demand could help stabilize the market for farmers.

Michael Langemeier says corn exports remain strong. 

“Part of that’s due to low corn prices,” he says. “When prices are low, other countries want to buy our corn and certainly, given the fact that we planted 95 million acres of corn, we need to have strong demand.”

He expects a shift in corn and soybean acres next year if lower prices continue.

“I actually think we’ll go back to more of a long run trend where we have 92 million acres of corn and 87 million acres of soybeans,” he says. “Right now, if you look at the soybean to corn price ratio, that could change 10 times between now and next spring.”

Langemeier says he’s also watching how global weather patterns could impact the rest of the growing season.

EDITOR’S TAKE:

Of course, lower prices will help attract buyers, but so does quality. The U.S. has a reputation for high quality grains. In addition, the relative strength of the U.S. dollar compared to the importing country’s currency is critical to their decision to buy. Other factors that influence the decision to purchase our corn or other products would include things like transportation cost, available supplies on the world market, substitute product availability and geo-political considerations. Corn growers are certainly grateful for a strong export market. Let’s trust it can continue to be an advantage.

Speaking of being an advantage, what can your parts and service departments do to help make life easier for farmers/ranchers in your area? What about a pre-harvest oil and lube special? Perhaps a discount on parts they might use in the course of everyday life. Anything you can do to save them time and make their operation more efficient will be greatly appreciated. If they are in your showroom, be sure to show them the new AGwagon. That’s bound to get their attention!