The last 12-15 months have probably seemed like a rollercoaster to those who follow the grain markets.  In the fall of 2008 we saw a dramatic decrease in commodities prices from the spring and summer of 2008.  Since early January of this year, prices have continued to fluctuate with a wet plating season and now a wet fall.  Despite the weather, experts are still projecting close to a record-breaking crop year for corn and soybeans.

With the 2009 crop year starting to wrap up, many are starting to turn an eye towards 2010.  In an recent Bloomberg article, chief economist for Deere & Co., J.B. Penn, stated that he believes that farmers could see an uptick in commodities prices in 2010.  The main reason for his optimism is the growing demand in Asia, Africa, and the rest of the world for crops to manufacture fuel and feed livestock.  According to the author, the United Nations expects worldwide food demand to increase by 70% in the next 40 years.

Read the entire Bloomberg article here

What are your thoughts on the growing worldwide demand for food?  How do you think it will affect the commodity prices here in the U.S.?  Send us your thoughts at eric@loranda.com.

Source: Bloomberg.com