Photo: Rastoney (Flickr)
After last year’s drought, farmers are anticipating a much better crop this year. That means there will also be more crop on the market, which is likely to push prices down.
Last year, cash corn prices for new crop ranged from $7.75 to $8 per bushel, while new crop-cash soybean prices averaged between $17 and $17.50 in Indiana.
Purdue agriculture economists estimate corn prices could drop from the nearly $8 per bushel last year to $5 per bushel this year, and soybeans could drop to just under $12 per bushel this year.
Still, the increase in production will likely make up for the price decline.
Farmer Dennis Carnahan grows corn and soybeans and says he anticipates producing about twice the crop he did last year.
“We would anticipate better yields than a year ago,” he says. “There is damage because of flooding and too much rain, but the damage is not as wide-spread as the damage from the drought.”
Indiana Soybean Alliance spokeswoman Megan Kuhn says farmers would always prefer to have crops to sell over high sale prices.
“It’s not a bad thing if prices go down, if that means we have a crop out there to sell. Because there are a lot of markets that need the crop and farmers would rather have grain to sell than not enough to sell,” she says.
The percentage of crop conditions rated by the USDA as “good to excellent” for soybeans jumped from 14 percent last year to 75 percent this year, while corn has skyrocketed from 12 percent last year to 81 percent this year.