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CoBank flags tight grain supply and volatile corn prices
Corn prices rose 20% last quarter amid concerns over a smaller US harvest, and the US corn crop is estimated at 15.8 billion bushels, down 7% year over year.
CoBank says tight grain supply and strong demand are driving ongoing volatility in grain and oilseed markets, as higher borrowing costs and surging rural infrastructure demand test the resilience of the US rural economy, according to the lender’s latest Quarterly report, cited by World Grain.
Corn prices surged 20% last quarter due to concerns over a shrinking US harvest, while the US corn crop is estimated at 15.8 billion bushels, down 7% year over year.
CoBank also expects price volatility to persist, citing tighter US supplies, a steep reduction in the European crop, and fewer shipments out of Ukraine.
On the demand side, the report says higher prices are cooling domestic consumption, while US soybean crush continues at record highs as processors expand to meet biofuels demand and historically large crush margins prompt additional capacity expansions scheduled to come online in 2028.
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