Grain elevators full of corn, wheat, and soybeans had a wild week, making a quick price trip up and then back down again. Prices for the three major US commodity crops exploded to multi-month highs on Thursday as fears abounded that the South American corn and soybean crops could fall short of expectations.
The US is still the largest producer of corn and soybeans in the world, but Brazil and Argentina are major exporters onto the global market, making their crops important as well.
Over the past few weeks, prices rose by over 10% as cold, rainy weather threatens to delay the South American grain harvests and political turmoil threatens exports as well.
After the exciting and fortuitous rally, many farmers and investors sold their grain holdings going into the weekend, knocking prices fiercely lower.
Meanwhile, US farmers are gearing up to plant this year’s corn crop. This weekend’s forecast for warm, sunny, and dry weather should allow farmers to plant up to a quarter of their corn fields by this weekend, and they may begin sowing soybeans in earnest soon.