An ag economist says the latest supply and demand report from the USDA should be a nudge for producers to implement some risk management.
University of Missouri’s Scott Brown says there’s a lot of uncertainty going forward, and producers shouldn’t overlook opportunities to lock in lower prices. “There’s certainly a lot of interest in renewable diesel and the idea that soybean meal is going to continue to be pushed lower as we expand soy oil use in that renewable diesel side of the equation,” he says. “
He tells Brownfield there’s a lot of focus on corn. “On the corn side, for me, it won’t be long until fertilizer prices continue to be the big driver here of how many corn acres we plant next spring,” he says. “If we continue to get the idea that fertilizer prices are going to be record high, it could curb corn acres.”
Brown says there will likely be a big battle for acres next year.
