USDA: Tightening Supplies Drive Prices Higher for Major U.S. Commodities
By USDA Communications
via Hoosier Ag Today (IN) - Feb 15, 2021
Futures prices-the price of a contract to deliver a commodity at a certain time in the future-for wheat, corn, and soybeans have been trending upward since August 2020.
This 6-month trend of rising prices accelerated in the first weeks of 2021, demonstrating stronger price gains in anticipation of USDA’s revised production forecasts for major U.S. grains in the World Agricultural Supply and Demand Estimates (WASDE) for January 2021.
Hard red winter wheat futures prices for the nearby month (e.g., prices associated with an active futures contract with the shortest time to maturity/delivery) rose 72 cents per bushel (13 percent) during the 30-day period just ahead of the January 12, 2021 release of the WASDE…
... The realization of tightening supplies coupled with robust demand from export markets, most notably China, have stimulated steady price increases for the big three U.S. row crops-wheat, corn, and soybeans...