By Ryan Dezember
Autumn harvests are underway and America's farmers are reaping record crops.
The highest yields ever are expected to result in record U.S. harvests of corn and soybeans, the U.S. Department of Agriculture said Friday in its monthly crop report. The report pushed down futures prices for both crops, which are trading around their lowest levels since 2020.
The prices of America's top cash crops factor into the cost of making products ranging from motor fuels to meat and contributed to inflation following the Covid lockdowns. Corn and soybean prices surged following consecutive summers of poor growing weather and sky-high fertilizer expenses.
Better growing weather this year has enabled farmers to coax more corn and soybeans per acre than ever in New York, Michigan, Iowa and Illinois. Record corn yields are also expected in Wisconsin, South Dakota, Nebraska and Louisiana. Soybean farmers in Mississippi and Missouri are on track for new high yields.
"You should have monster harvests this week because the weather is dry," said Sal Gilbertie, president of Teucrium Trading, which manages exchange-traded funds that hold agricultural futures.
Crop prices tend to trade around break-even production costs until traders worry that there is just enough to meet current demand, and that a poor harvest the next year could leave the supplies short. This year's big harvest is leaving little doubt about whether stockpiles will end autumn in adequate shape, he said.
"There's either plenty or enough, and there is plenty," Gilbertie said.
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(END) Dow Jones Newswires
October 11, 2024 15:25 ET (19:25 GMT)
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