What a difference a year makes. Iowa corn and soybean crops suffered last July from a sweltering drought. This year, good spring rain brought much better crop conditions which means a potentially strong yield — and lower prices. World Agriculture Outlook Board chairman Gerry Bange predicts corn prices will drop soon, by the bushel.
“We’re looking now at a price over 2013-14 at $4.80, somewhere between $4.40 and $5.20,” Bange says. “That’s going to be down very sharply from the $6.95 that was recorded in 2012-13.” He also predicts soybean prices will also fall.
“We’re looking for a price between $9.75 and $11.75,” Bange says. “Of course, that would give us $10.75 at the midpoint. That changed our forecast since last month. That would be down at $10.75 very sharply from the $14.40, which is a record price that will be recorded for 2012-13.”
The start of harvest is still many weeks away though, and conditions across parts of Iowa have changed dramatically since spring, with some areas experiencing the driest July since the 1970s.