WEST LAFAYETTE, Ind. and
CHICAGO, Sept. 5, 2017 /PRNewswire/ -- Farmer
sentiment dropped seven points in August as both grain and oilseed
prices fell, according to the Purdue University/CME Group Ag
Economy Barometer.
While the barometer, which is based on a survey of 400 U.S.
agricultural producers, showed a decrease in optimism, the August
reading of 132 is still stronger than a year ago when the index
read 95. Since hitting a peak of 153 in January, the barometer's
monthly readings have ranged from a low of 124 in March to a high
of 139 in July.
The change in sentiment was primarily driven by the Index of
Current Conditions, which fell to 122 in August after reaching an
all-time high of 142 in July. The Index of Future Expectations held
fairly steady, dropping just one point from 138 in July to 137 in
August.
"Weakness in the Index of Current Conditions compared to July
wasn't unexpected given the recent downtrend in grain and oilseed
prices," said Jim Mintert, director
of Purdue's Center for Commercial
Agriculture and principal investigator for the barometer. "For
example, from July 17 to August 21 –
the first days of the July and August sentiment surveys, the
December corn futures contract price declined 6 percent. Prices for
wheat and soybeans also weakened, generating additional concern
about farm revenues and profitability."
In the August survey, producers were asked if the best
opportunity to market grain occurred over the last six months or
would be in the upcoming six months. A majority (59 percent)
thought the best opportunity took place during the last six months,
which Mintert said suggests there is some concern that prices are
not likely to recover soon.
Researchers also sought to understand the overall mood in the
agricultural community. The August survey included a question that
asked producers about their neighbors' sentiments regarding the
current agricultural economy. Most – 71 percent – said that farmers
in their areas were pessimistic.
The August report also includes information about shifts in
farmer responses to key survey questions over the last year. In
particular, the report notes that, although there has been an
improvement in producer sentiment since summer 2016, conditions in
production agriculture are still challenging for many farm
operations. Read the full 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.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
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Inc. CBOT, Chicago Board of Trade,
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Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
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Related website:
Purdue
University Center for Commercial Agriculture:
http://purdue.edu/commercialag
CME Group: http://www.cmegroup.com/
A publication-quality photo is available at:
https://news.uns.purdue.edu/images/2017/august-agbarometer.jpg
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SOURCE CME Group