1888PressRelease - But while producers were optimistic about future conditions in the agricultural sector, their feelings about current conditions declined.
Nagamasa-Global.com, a commodity broker that aims to offer the highest level of customer service and transaction capability required by today’s sophisticated financial market participants, today announced the findings of its agricultural producers’ sentiment.
The producers are feeling more optimistic about the health of the agricultural economy despite declines in key commodity markets in last two months, according to the latest survey results from the Nagamasa Global Agricultural Outlook Indicator.
The Producer Sentiment Index jumped in the last two months. The index is based on a monthly survey of 300 Japanese 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 Goro Kasahara, the Agricultural Outlook Indicator's Principal Investigator and Director for Commercial Agriculture Trading.
"The improvement in producer sentiment occurred despite the fact that grain and oilseed prices declined sharply," said Goro Kasahara, who also is a professor of agricultural economics.
"Although the uptick in crop prices this spring was short-lived and prices retreated in last two months, it appears that the price rally boosted producers' expectations about future economic conditions," Goro Kasahara 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."
Producers were asked about their expectations for commodity prices. Twenty-three percent of respondents said they expect 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.
About Nagamasa Global
Nagamasa-Global.com provides insights in the commodities markets to all market participants to allow them to make better business decisions with confidence. The firm includes a team of experienced financial and market advisors offering a vast list of services for small-scale businesses, individuals, corporate and governmental entities. The company is emerging as a trusted commodity broker with customers from different sectors looking for expertise in pricing, news, and analytics. The company focuses on feasibility more than anything else, and this is the reason it provides a wide array of products and services to its clients that allow them to better sustain their investments.