The bumper corn crop this year means lower prices for the grain, but feed demand will continue to be strong… while demand to turn grains into biofuels will stagnate. That’s the mixed bag of information attendees of the American Farm Bureau Federation’s 96th Annual Convention and IDEAg Trade Show heard from Patrick Westhoff, director of the Food and Agricultural Policy Research Institute, updating them on his views of the 2014/15 marketing year.
One area representing more promise for corn and soybeans is feed demand from both the domestic and international livestock sectors.
“We’re going to have a lot more animals out there and more need for feed,” he said.
On the other hand, the biofuels sector is expected stagnate, and may perhaps be even weaker.
“We’ll have significantly smaller corn yields in 2015/16 caused in part by the low demand for ethanol. Yield numbers will change.”
Westhoff added that while China’s economy will still see growth, it will be less than in the past at about 6.5 percent of its gross domestic product.
He did conclude telling attendees that weather, oil prices and other factors will drive annual swings in prices.