Via Lafayette Online, Brian Wallheimer reports on a projected a squeeze in agricultural margins next year. Input prices such as fertilizer are likely to come down, and there may be some bargains on fertilizer, but futures prices are down for corn and soybeans meaning that overall profit margins are likely to be down again from where they were in 2007 and 2008.
At the time these estimates were prepared, Chicago Mercantile Exchange Group futures indicated that fall 2010 cash prices were near $3.30 per bushel for corn and $8.40 for soybeans. These prices are lower than what was used in the 2009 budget estimates by 70 cents for corn and 30 cents for soybeans.
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