Grain prices have fallen to their lowest level since 2020 during the height of the COVID-19 pandemic with grain values falling this year by 17 percent.
It’s a sharp reversal from the post-COVID rally that sent grain prices more than doubling more than two years ago, which was triggered by the start of Russia’s war with Ukraine in Feb. 2022.
Scott Irwin, University of Illinois Ag Economist, says the falling grain prices could mean significant financial losses for corn and soybeans producers this year.
“Regardless of the fine details of crop insurance and government payments, alarm bells should be going off about the scale of potential corn and soybean losses for the 2024 crop in the Corn Belt,” Irwin says. “Right now, the losses look punishing due to the combination of rising expenses in recent years and the significant drop in corn and soybean prices.”
He also says corn losses could surpass $200 per acre, and soybean losses could easily reach $98 per acre.
Click BELOW to listen to market analyst Mike Silver with Kokomo Grain, as he reviews the grain markets from Thursday, July 11.
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Source: NAFB News Service