Grain and oilseed prices continue to decline in the United States

Grains, Cereal & Legumes
United States
Market & Price Trends
Published Apr 16, 2024

Tridge summary

The recent CoBank Knowledge Exchange report indicates a decline in grain and oilseed prices, attributed to factors such as a strong U.S. dollar, the arrival of South American crops, and high domestic supplies. Notably, while corn, grain sorghum, barley, and oats experienced price drops, soybeans, cotton, spring, and durum wheat prices rose. The report also discusses potential shipping delays due to low water levels in the Mississippi River, shifts in U.S. crop acreage with decreases in corn and sorghum and an increase in soybeans driven by renewable diesel demand, and a decrease in soybean export volumes primarily due to reduced demand from China and South American competition. Additionally, it touches on the global impact of weather conditions on wheat planting and growth, and a positive outlook for U.S. ethanol in 2024, fueled by lower corn prices and continued demand for soybean oil and other feedstocks for renewable diesel production.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Prices for grains and oilseeds continued to decline last quarter, weighed down by a strengthening U.S. dollar, crop arrivals from South America and ample domestic supplies, CoBank Knowledge Exchange said in a new quarterly report. Prices for corn, grain sorghum, barley and oats fell significantly from last year, while soybeans, cotton, spring and durum wheat rose in price, the report said. "But a lot could happen with the weather and markets that would change the balance this spring," said Tanner Ehmke, lead grains and oilseeds economist at CoBank. "Low water levels in the Mississippi River are already indicating possible delays in grain and oilseed shipments." US corn acreage forecasts are cut 4.9% from last year as falling prices and a strong US dollar discourage planting. The area under sorghum decreased by 11%, and under barley and oats - by 14%. Corn stocks total 8.35 billion bushels, up 13% from last year. Corn exports were high, especially to Mexico. But next quarter, when ...
Source: Oilworld
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