The reasons for 25-30% increase in prices of corn and soybean during the past 3 months

Published 2020년 11월 14일

Tridge summary

Soybean, corn, and wheat prices have surged in the past three months, driven by unfavorable weather conditions and strong demand from China. The USDA forecasts a decrease in soybean and corn production in the 2020/21 crop, while global wheat consumption is expected to increase, leading to higher exports from Russia and the EU. The weather situation in Brazil's Safrinha region is critical for the future production of corn. The trend of increasing imports and decreasing stocks suggests a challenging market for grains in the coming months.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the past 3 months alone, soybean prices have increased by over 30%, currently reaching the highest level in more than 4 years (about 11.40 USD / bushel), maize has increased by over 25%, reaching the highest level in 1 year (about $ 4.14 / bushel), while wheat also increased by about 20% (about $ 6 / bushel). Unfavorable weather in the US and some parts of South America as well as Europe in recent years affects the yield of crops. Meanwhile, strong demand from China, especially for corn and soybeans, caused stocks in the US to plummet and spiked prices. US soybean production in crop year 2020/21 The Ministry of Agriculture of this country (USDA) is forecasted to reach only 113.5 million tons, down from 116.15 million tons forecasted a month ago; End-of-season inventories were also revised downward to 5.2 million tons, from 7.9 million tons in October. Analysts said that China's demand will never slow down. In fact, since the beginning of the last decade, China's production of ...

Source: CafeF