A new report predicts a rise in global demand should bring an end to the three-year decline in commodity prices.
Nebraska Farm Bureau senior economist Jay Rempe says the Rabobank report should give hope to farmers and ranchers about economic improvements in the near future.
Rempe says, “When you look overseas at the growing demands and the growing incomes, particularly in Asia, when you look what’s happening there and they’re going to be demanding more and more high-value products, over the long run, there is a sense demand will pick up and things will pick up a little bit.”
Rempe agrees with the report that global demand is improving for American commodities.
“Our top trading partners, Mexico, China, Vietnam, they’re very much populous countries and their incomes are growing,” Rempe says. “They’re going to demand a lot of beef and pork which is good for United States livestock producers.”
Rempe hopes the incoming Trump administration will cooperate with ag commodity groups to further develop export markets.
“We’ve had some good production here the last couple years on the crop side and on the meat side as well, we’ve got some good supplies,” Rempe says. “We need an increase in demand to help pull up those prices. We’re going to be working closely with the new administration to try and do that.”
Rabobank’s report indicates record high stocks of staple food commodities like wheat, corn and soybeans are likely to keep world food prices low in 2017, even as inflation starts to rise in developed countries.
By Jerry Oster, WNAX, Yankton