Is the market dominated by bad news? Not really, says University of Missouri Extension Marketing Specialist Melvin Brees, who outlines several positive developments:
Current prices discourage in-creased plantings in South America.
Lower prices reduce feed costs and support continued strong feed use.
World population and incomes suggest that food demand is solid.
Lower prices and freight costs offset the negative impacts of a stronger dollar.
While corn and soybean carryout is increasing, it remains below average.
The 2008-2009 corn stocks/use ratio is the lowest in over 10 years.
Lower fuel costs and fertilizer price weakness might offer some input cost relief.
Higher crop prices may be needed to encourage 2009 crop production.
For more information, check www.fapri.missouri.edu/farmers_corner/mktng_newsletter/CurrentDM.pdf.