The US Department of Agriculture (USDA) has predicted that the price of corn, soybeans and other grains is likely to fall as favourable weather boosts production.
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Farmers are on-track to deliver the second-largest corn and fourth-largest soybean crops in history, the USDA said today (12 August).
The estimates, based on field visits and farmer surveys, found that “nearly ideal” weather had helped Midwestern farmers recover from June’s flooding.
The USDA predicted that this would result in lower prices for corn, soybeans and wheat.
Average corn prices this year are expected to drop to US$4.90 from $5.90 per bushel. After the floods, corn pries had soared to record highs of nearly $8 a bushel.
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By GlobalDataSoybean prices are expected to drop to $11.50 from $13 per bushel, the USDA said.
The news will come as a welcome respite to the country’s meat producers, who have been hardest hit by the rising cost of grains.
Last month Tyson Foods, the world’s largest meat company, said that third quarter profits were down almost 90% due to increasing feed costs. Meanwhile, poultry producer Pilgrim’s Pride booked a Q3 loss of $52.8m – down from profit of $62.6m – at the end of July.
