Economist concerned USDA’s demand expectations might be too optimistic
An ag economist is concerned USDA’s latest corn and soybean demand expectations might be too optimistic.
Todd Hubbs with the University of Illinois says looking out to the next marketing year, it appears USDA is making some strong assumptions about feed usage.
“When you look at the meat production numbers that the USDA forecast, the consumption numbers for beef and exports, it looks like a full recovery. While I’m hopeful that’s the case, it’s yet to be seen.”
USDA is also forecasting improved ethanol demand.
“Which I think may happen, but I think we’re a long way from that being resolved. The virus is going to determine a lot of those issues as we move forward. But I understand why (the USDA) did what they did.”
Hubbs tells Brownfield USDA’s use numbers for soybeans are reasonable as long as the phase one trade deal between the U.S. and China remains intact.