Economic and Commodity Outlook ASFMRA Denver, Colorado October 30, 2009
THREE BIGGEST EVENTS of LAST TWO WEEKS
October 17,2009 Purdue 26 THE Ohio State 18
October 24,2009 Purdue 24 Illinois 14
October 24,2009 Iowa State 9 Nebraska 7
General Economy Where are we headed…
CASH for CLUNKERS was A GOOD DEAL
GOT a LOT of OBAMA BUMPER STICKERS OFF THE ROAD
Economic Overview While some economic indicators are hinting the recession is ending – it isn’t. Unemployment remains high with little sign of improvement. Deflation continues. This will be the decade of Three Bubbles: The High Tech Bubble of 2000. The Housing Bubble of 2005-06. The Commodity Price Bubble of 2008.
Richest in the world • Largest military • Center of world business and finance • Strongest education system • World center of innovation and invention • Currency the world standard of value • Highest standard of living
Dow Jones Industrial Average, Continuous Monthly With Disparity Ratio
Agriculture Overview Grain prices have likely bottomed for this marketing year Livestock profits will improve Ethanol production will increase Fertilizer supplies could get tight All ag commodity prices will be very volatile.