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Demand for corn, soybeans and other commodities is strong and global stocks are down meaning lower supplies.

John Hart, Associate Editor

February 8, 2021

2 Min Read
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John Hart

In the bleak mid-winter there is still hope because we know that the longer days and warmer temperatures of spring are on the way. For farmers, there is hope because a new crop year will soon begin with spring planting.

In many ways the entire year of 2020 was a bleak mid-winter of the soul because of the pandemic, fiercely partisan politics and violence in our nation’s biggest cities. Unfortunately, so far 2021 isn’t looking much better with the Coronavirus still raging and a political divide that isn’t getting any better.

What’s needed now more than ever is hope. And there is hope for farmers for the crop year to come: Demand for corn, soybeans and other commodities is strong and global stocks are down meaning lower supplies. This is fueling hope for higher prices and a generally optimistic, bull market for 2021.

USDA says U.S. stocks of corn and soybeans will shrink to their lowest levels since 2014. USDA estimates the average farm-gate price for corn and soybeans this marketing year will be the highest since 2013/2014. USDA also sees strong economic growth, low interest rates and low inflation this year which will help build demand and better prices for farm commodities.

Worldwide demand has been strong for corn and soybeans with Brazil and Argentina struggling with dry weather. Global buyers are showing more interest in U.S. corn and soybeans which is helping the price outlook. In short, 2021 is expected to be a profitable year for corn and soybean farmers. There is also hope for cotton with a low stocks-to-use ratio expected to help prices.

What is desperately needed is cooperative weather throughout the growing season across the Southeast and bumper crops so farmers can take full advantage of the higher prices. After so many challenging weather years and years of depressed commodity prices, this would give farmers much needed hope in 2021.

About the Author(s)

John Hart

Associate Editor, Southeast Farm Press

John Hart is associate editor of Southeast Farm Press, responsible for coverage in the Carolinas and Virginia. He is based in Raleigh, N.C.

Prior to joining Southeast Farm Press, John was director of news services for the American Farm Bureau Federation in Washington, D.C. He also has experience as an energy journalist. For nine years, John was the owner, editor and publisher of The Rice World, a monthly publication serving the U.S. rice industry.  John also worked in public relations for the USA Rice Council in Houston, Texas and the Cotton Board in Memphis, Tenn. He also has experience as a farm and general assignments reporter for the Monroe, La. News-Star.

John is a native of Lake Charles, La. and is a  graduate of the LSU School of Journalism in Baton Rouge.  At LSU, he served on the staff of The Daily Reveille.

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