Harvest time is months away but one result is clear – the lowest corn and soybean prices in five years – if crops are as large as USDA’s planting data indicate. Analysts such as economist Darrel Good of U-Illinois say the average price for this year’s corn crop could be “near $4” a bushel and soybeans “perhaps $10.50” for the 2014/15 marketing year. AgriMoney says the average cost of production in Iowa is $4.29 for corn and $11.13 for soybeans according to Iowa State University figures.
The droughty 2012 crops set the record season-average price for corn, $6.89, and soybeans, $14.40. On July 11, USDA will update its forecasts of season-average prices for this year’s crops, now $4.20 a bushel for corn and $10.75 a bushel for soybeans.