August Agricultural Outlook. The institute uses data and computer modeling systems to analyze the economic interrelationships of agricultural production, food, and agribusiness. This baseline information is shared with producers and agribusiness, policy makers and international commodity markets. The teleconference is a monthly network that involves producers and marketing clubs in several states and features expert comments from analysts on current market developments and marketing strategies producers can use to capitalize on the market. Global prices may not improve significantly until 2002 or 2003, but we do see slow gains ahead over the next two to three years for U.S. commodity prices.
Exports are a crucial factor in the beef price outlook.
We have limited sales potential this year in Japan and the former Soviet states, but strong markets such as Korea and Mexico should help fuel export sales. Beef production and slaughter will rise this year. Even though we are moving more domestic product this year than last, relatively weak domestic demand will do little to draw down meat inventories. After that, the institute looks for a 3 percent to 4 percent annual increase. Even though corn exports are expected to lag 75 million bushels behind 1998's exports, Adams said, carryover stocks should drop by as much as 200 million bushels by the end of the year.