Shrinking Grain Supplies Send Prices Skyward

Jan 27, 2021

Dry weather in key growing regions of the U.S. and South America has hit domestic corn production.

Analysts expect 14.2 billion bushels for the current marketing year, which is 325 million bushels less than projected in December and 1.1 billion bushels below initial projections for the 2020 crop, according to the USDA.

Corn stockpiles also are expected to fall. The USDA projects a decline of about 150 million bushels, which would lower stockpile inventory to 1.55 billion bushels. That is 1.2 billion bushels below last summer’s level. The decline was steeper than what analysts projected, according to The Wall Street Journal.

The shift in inventory led to a sharp rise in prices. On Jan. 12, corn futures rose by the maximum allowed by the Chicago Board of Trade to more than $5.17 per bushel. The price continued upward the following day.

The USDA also cut its soybean stockpile forecast and wheat stockpiles, which similarly caused those commodities to trade at their highest levels since 2014. Soybeans were above the $14 per bushel mark and wheat over $6.60 per bushel in mid-January.

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Video: Farm Health Guardian | Digital Biosecurity in Real Time

Disease risk, biosecurity, and real-time monitoring continue to be major topics across the pork industry. In this episode of Swine Web Industry Perspectives, presented by Farm Health Guardian, we discuss how digital biosecurity and real-time data are changing the way producers think about herd protection, people movement, and operational decision-making.

The conversation explores:

disease risk in modern pork production,

the impact of people movement on biosecurity,

the importance of real-time monitoring,

digital biosecurity technology,

and how Farm Health Guardian developed tools designed to support modern swine operations.

As the industry continues focusing on prevention, preparedness, and operational efficiency, connected technologies and actionable data are becoming increasingly important parts of modern herd health management.