Three commodity organization representatives attempted to answer the question on everyone’s mind right now regarding commodity trends – where are we headed?
Steve Censky of the American Soybean Association, Fred Stemme with the National Corn Growers Association and Alan Tracy of US Wheat Associates all made presentations and took questions from the audience at the Association of Equipment Manufacturers AgExecutive Forum last week in St. Louis.
Steve noted the importance of biotechnology in the soybean industry and the increase in global demand for soybeans. “Global demand since 1990 for soybeans has been rising at 2x that of corn and almost 4x that of wheat or rice,” Steve said. “That is because people around the world have been improving their diets, which means more oil in the diet and more meat, which is good for the soybean industry.”
Fred started off his presentation with a flawless report on closing futures prices – sounded as good or better than any farm broadcaster I know – making bad news sound good! His presentation focused on the increase in corn yields since 1944, which can allow them to meet the feed, food and fuel needs of the world. “Who would have imagined 60 years ago that today we could produce on the same number of acres, 85 million acres, nearly four fold the size of crop,” Fred noted. “We went from about 3 billion bushels to 13 billion bushels last year.”
There was a bit of good-natured competition between the three. Alan pointed out that wheat may be losing acres to corn and beans, but he likes to remind his two colleagues that “mine is the only product that is mentioned in the Lord’s Prayer.” He noted the increase in wheat production in the Black Sea area, such as Ukraine, and he showed a graph comparing the similarities in weather between that region and the Midwest, suggesting that we “teach the Russians to grow corn and soybeans.”
Lots of good stuff in their presentations, which you can listen to here:
aem-forum-08-commodity-panel.mp3
I also interviewed Fred and Alan – listen to them here:
Fred Stemme aem-forum-08-stemme.MP3
Alan Tracy aem-forum-08-tracy.mp3
View and download photos from the AEM AgExecutive Forum here.