No two years in farming are alike or free of drama.
This year there is a dramatic reduction in supply, a drought in parts of the corn belt and the significant increase in oil prices. So far there are some concerning issues with our crop conditions caused by a drought in parts of the corn belt and the Southwest. This year’s corn and soybean meal prices will be among the highest in the last decade. The core of this problem goes back to 2019 when the corn and soybean carryover in the market was dramatically reduced by a late planting resulting in a poor crop. The crop conditions in Brazil are also a factor. Additional unusual global consumption patterns in 2020 further eroded carryover supplies. If there are any major issues such as continued lack of rain in July, we could have an even more severe situation, because the market does not have the usual supply carryover to cushion an event.