WEST LAFAYETTE, Ind. and
CHICAGO, Aug. 2, 2016 /PRNewswire/ -- Agricultural
producers are feeling more optimistic about the health of the
agricultural economy despite declines in key commodity markets in
June and early July, according to the latest survey results from
the Purdue/CME Group Ag Economy Barometer.
The July Producer Sentiment Index jumped to 112, an eight-point
increase over June's 104 reading. The index is based on a monthly
survey of 400 U.S. agricultural producers. It includes measures of
sentiment surrounding both current conditions and future
expectations.
The increase comes on the heels of falling crop prices and was
primarily driven by optimism about the future, said Jim Mintert,
the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture.
"The improvement in producer sentiment occurred despite the fact
that grain and oilseed prices declined sharply in late June and
early July," said Mintert, who also is a professor of agricultural
economics.
The Index of Future Expectations increased to 121 in July, which
is well above June's 107 and is the highest reading of the index
since data collection began in the fall of 2015.
But while producers were optimistic about future conditions in
the agricultural sector, their feelings about current conditions
declined. The July Index of Current Conditions came in at 93, a
five-point drop since June.
"Although the uptick in crop prices this spring was short-lived
and prices retreated in late-June and July, it appears that the
price rally boosted producers' expectations about future economic
conditions," Mintert said. "In other words, the spring rally didn't
substantially improve producers' perspectives regarding near-term
economic conditions, but it did affect how they viewed the
future."
On the July survey, producers were asked about their
expectations for commodity prices. Twenty-three percent of
respondents said they expected higher corn prices a year from now,
20 percent said soybean prices would be higher, and 25 percent said
they thought wheat prices would be higher.
In addition to their optimism about grain prices, 23 percent of
producers also indicated they expect higher farmland values in a
year. That's the highest percentage recorded since data collection
began. Furthermore, the 25 percent expecting lower farmland values
in a year is the lowest percentage recorded in the same
timeframe.
To read the full July report, access additional resources and
sign up to receive monthly barometer email updates, visit
http://purdue.edu/agbarometer.
On Thursday (Aug. 4), Purdue agricultural economists Mike Boehlje, David
Widmar and Michael Langemeier will present a quarterly webinar
focused on the Ag Economy Barometer findings, including information
from the thought leaders' survey. The free webinar will be at
1:30 pm EDT. Register at
http://purdue.edu/agbarometer.
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. CME Group exchanges offer 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. Around
the world, CME Group brings buyers and sellers together through its
CME Globex® electronic trading platform and its exchanges based in
Chicago, New York and London. CME Group also operates one of the
world's leading central counterparty clearing providers through CME
Clearing and CME Clearing Europe, which offer clearing and
settlement services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group's products and services
ensure that businesses around the world can effectively manage risk
and achieve growth.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
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Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
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Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All
other trademarks are the property of their respective owners.
Further information about CME Group (NASDAQ: CME) and its products
can be found at www.cmegroup.com.
Related website:
Purdue
University Center for Commercial Agriculture:
https://ag.purdue.edu/commercialag/Pages/default.aspx
CME Group: http://www.cmegroup.com/
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SOURCE CME Group