Weather, demand and COVID stimulus helped push 2020 grain prices to levels not seen in years; $12 soybeans and $4 corn. U.S. Commodities President Don Roose says production issues around the world are pushing prices higher. “We got into drought conditions in the western part of the Corn Belt and all of a sudden, U.S. carryout continued to evaporate like cotton candy to where we’re at going into the year. We have a corn carryout of 1.7 billion and a soybean carryout of 170 million bushels and shrinking.” While weather impacted production, an increase in use reduced global supplies of feed grains. “China has been pushed by the administration to increase their demand and they’ve been expanding their hog herd. The crush and exports are strong. Now, we’re in a phase where we’re trying to ration soybean supplies and watching South American weather.” The devaluation of the U.S. dollar spurred additional demand for U.S. commodities.
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