Grains Bounce Back

With weather warming up, Midwestern farmers are just beginning to plant this year’s corn and soybean crops, but many are already thinking ahead to harvest, which is the only time they see income for a year’s worth of costs and hard work.

Luckily, harvest outlooks are looking brighter as the value of this fall’s crops are rising to recent highs, with December corn and November soybean futures trading for $4.14 and $10.47 per bushel, respectively.

Grain prices are rising as fears subside about the trade dispute with China after a recent statement from Chinese Premier Li Keqiang that China is open to negotiations and would prefer to manage conflicts through dialogue. China currently buys about a third of all U.S. soybeans and maintaining that relationship is critical to U.S. grain prices.

Meanwhile, South American corn and soybean crops that compete with U.S. exports are increasingly troubled by poor weather. Things have gotten so dire that Argentina, the third largest global soybean exporter, is now buying U.S. soybeans to meet its demand.