WEST LAFAYETTE, Ind. and
CHICAGO, Aug. 1, 2017 /PRNewswire/ -- Farmers' sentiment
about the agricultural economy climbed to 139 in July - the highest
level recorded in 2017 since January, according to the Purdue
University/CME Group Ag Economy Barometer.
The barometer, which is based on a survey of 400 U.S.
agricultural producers, exceeded recent barometer readings by 8 to
9 points - breaking out from a range of 130 to 131 during the
months of April, May and June.
Overall, farmers' sentiment this summer has been significantly
more positive than it was during the summer of 2016, when the Ag
Economy Barometer ranged from the mid-90s to the low 100s,
according to Jim Mintert, the barometer's principal investigator
and director of Purdue University's
Center for Commercial Agriculture.
The barometer's two sub-indices also were higher in July, with
the Index of Current Conditions rising from 132 in June to 142 in
July, and the Index of Future Expectations climbing from 131 in
June to 138 in July.
The July 2017 index also marked
the second-highest level for farmers' sentiment in the history of
the barometer, which launched in October
2015.
A key factor contributing to the more positive outlook among
agricultural producers includes expectations for higher prices of
key commodities. As part of the most recent Ag Economy Barometer
survey, producers were asked if they anticipated higher, lower or
similar prices for grain, cotton and oilseed in the next 12
months.
Of the 400 respondents, 39 percent said they expected to see
higher prices for corn in the coming year. That compares to the 24
percent that was reported in the April
2017 survey and 22 percent in the July 2016 survey. Expectations for increases in
soybean and wheat prices were nearly as strong as they were for
corn, according to Mintert.
The improvement in producers' expectations for grain and oilseed
prices corresponded with market volatility during the early summer.
For example, corn futures prices, based on the December 2017 futures contract, traded down to a
low of about $3.75 in late
June 2017 to a high of more than
$4.15 in early July over a span of
just a few trading days. The price increase seems to have helped
boost producers' price expectations, the report indicated.
Read the full July Ag Economy Barometer report at
http://purdue.edu/agbarometer.
The Ag Economy Barometer, Index of Current Conditions and Index
of Future Expectations are available on the Bloomberg Terminal
under the following ticker symbols: AGECBARO, AGECCURC and
AGECFTEX.
About the Purdue University Center
for Commercial Agriculture
The Center for Commercial Agriculture was founded in 2011 to
provide professional development and educational programs for
farmers. Housed within Purdue
University's Department of Agricultural Economics, the
center's faculty and staff develop and execute research and
educational programs that address the different needs of managing
in today's business environment.
About CME Group
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. Through its exchanges, CME Group offers the widest range of
global benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural products and metals. CME
Group provides electronic trading globally on its CME Globex
platform. The company also offers clearing and settlement services
across asset classes for exchange-traded and over-the-counter
derivatives through its clearinghouses CME Clearing and CME
Clearing Europe. CME Group's products and services ensure that
businesses around the world can effectively manage risk and achieve
growth.
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Related website:
Purdue University Center for
Commercial Agriculture: http://purdue.edu/commercialag
CME Group: http://www.cmegroup.com/
Photo Caption
The Purdue/CME Group Ag Economy
Barometer climbed to 139 in July as stronger commodity prices led
to more optimistic producer sentiment. (Purdue/CME Group Ag Economy Barometer/David Widmar)
A publication-quality photo is available at
https://news.uns.purdue.edu/images/2017/july-ag-barometer.jpg.
CME-G
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SOURCE CME Group