Ag News

Global demand contributes to positive commodity outlook

IARN — Dr. Chad Hart, often referred to as “Dr. Doom,” offered a positive outlook on agriculture at the 2021 Agribusiness Showcase and Conference.

Dr. Hart, an economics professor at Iowa State University, points to, “A futures market offering an optimistic viepoint for the next couple of years.” The positive outlook is based on strong international demand and dryness concerns as it pertains to global crop production, according to Hart.

“What we have seen, for this marketing year, is a tremendous increase in global demand. The big thing happening now that COVID-19 started to mask for a while is the need for protein worldwide. That is driving a tremendous need for feed grains throughout the world,” Hart says.

China actively participates in the United States grains market, as the country looks to rebuild its swine herd following the African Swine Fever (ASF) viurs. Hart notes, “That has put them in a buying mood, but they’re not the only ones participating.”

Similarly, United States livestock production looks to reach new heights.

“We’re looking at record production of beef, pork, and broilers. That’s being driven by strong exports,” Hart says. “The trade story is the big story when looking at these markets.”

Story courtesy of the Iowa Agribusiness Radio Network

Image source: Wikimedia commons

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