FAPRI: Crop Prices Dropping

John DavisCorn, Cotton, Soybeans

FAPRI logoCrop producers are seeing a complete reversal of fortunes from not very long ago, as commodity prices drop and are expected to continue to stay down through next year. The latest report from the Food and Agricultural Policy Research Institute at the University of Missouri shows a sharp decline in prices for grains, oilseeds and cotton compared to recent peaks.

· The potential for record corn and soybean crops has weighed on prices for grains and oilseeds. Corn and soybean prices for the crops harvested this fall could be the lowest since 2009.

· Corn prices fall to $3.89 per bushel for the 2014 crop. Even with a projected decline in 2015 U.S. corn production, prices remain around $4 per bushel in 2015 and beyond.

· Large U.S. and global supplies cause soybean prices to decline to $10.30 per bushel for the 2014 crop and below $10 per bushel for the crop harvested in 2015.

· Cotton prices have also declined sharply, partly in response to large Chinese and global cotton stocks. Farm prices for cotton drop to 65 cents per pound this year, and remain near that level.

The report goes on to say that strong international demand is keeping cattle, hog and milk prices strong, despite the drop in grain prices to feed them. But lower meat and dairy prices are expected in 2015.

You can read the full report here.