USDA Predicts Highest Corn, Soybean Prices in Seven Years
After a bumper harvest last season, U.S. corn and soybean farmers can fairly expect to see the highest season-average prices for their crops since the commodity boom which ended in global gluts seven years ago.
Tightening global supplies combined with high-volume purchases from China are driving rising prices as stockpiles are expected to shrink to their lowest points since 2014 by the time the 2021 harvest commences.
The USDA has posted its final numbers for the 2020 season which came in lower than what were expected by traders, with the corn crop totaling 14.182 billion bushels (a reduction of 325 million bushels since the forecast a month before), and the soybean harvest finishing at 4.135 billion bushels - news that resulted in the Chicago futures markets soaring.
And despite expected prices of $4.85 per bushel for corn (compared to a 2019 average of $3.56 per bushel) and $11.15 per bushel for soybeans (compared to $8.57 for 2019), U.S. soybean exports are also expected to hit a record 2.23 billion bushels - returning to pre-trade war volumes.
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