Grain Prices: This year vs last year
According to the latest USDA data, prices received by farmers for major commodities including corn, soybeans, and wheat have retreated from the elevated levels posted during 2022.
Crops See Lower Prices Moving into 2023According to the latest USDA data, prices received by farmers for major commodities including corn, soybeans, and wheat have retreated from the elevated levels posted during 2022. The declines align with easing supply concerns after Ukraine-driven shortages last year.
Corn prices averaged $4.80 per bushel in December 2023, down 27% from the $6.58 average in December 2022. Soybeans followed a similar trajectory, shedding 9% to $13.10 per bushel, compared to last year’s $14.40.
Wheat markets have also lost considerable steam, now trading 24% below 2022. The national all-wheat average sank from $8.97 per bushel in December last year to $6.79 for December 2023.
Hay prices are down 19% as the oversupply situation improves. Alfalfa hay averaging $205 per ton last month compared to $268 the prior December. Similarly, prices for other types of hay are 5% lower year-over-year.
The retreat from 2022’s globally-inflated grain and oilseed values reflects easing supply tensions combined with demand pressures from the slowing global economy and high interest rate environment. Crop prices are expected to be heavily dictated by South American production prospects as the 2023 growing seasons progress there.