 | COMMODITIES CORNER |
Good news for anyone worried about grocery bills: U.S. farmers are sitting on a bumper crop this year. In recent months, we've noted that contrary to what most folks believe, commodity prices are in a long sideways market.
There's a good reason for this. When commodity prices rise, companies respond by ramping up production. The latest example is three major U.S. crops: corn, wheat, and soybeans. Prices for these commodities jumped in 2012 after a major drought hit the Midwest. But this year, the farm belt is expecting a record corn crop.
Good weather is also boosting the outlook for this year's wheat and soybean harvests. As you can see in today's chart, the result is a big downtrend in the price of these crops. Corn prices are down nearly 40% over the past year. Wheat and soybean prices are both down more than 15% in the same time frame.
Prices for each of these crops are back around the same levels as five years ago. U.S. farmers are helping keep food prices down and that's good news for everyone.
There's a good reason for this. When commodity prices rise, companies respond by ramping up production. The latest example is three major U.S. crops: corn, wheat, and soybeans. Prices for these commodities jumped in 2012 after a major drought hit the Midwest. But this year, the farm belt is expecting a record corn crop.
Good weather is also boosting the outlook for this year's wheat and soybean harvests. As you can see in today's chart, the result is a big downtrend in the price of these crops. Corn prices are down nearly 40% over the past year. Wheat and soybean prices are both down more than 15% in the same time frame.
Prices for each of these crops are back around the same levels as five years ago. U.S. farmers are helping keep food prices down and that's good news for everyone.
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