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Last year, corn and soybean prices soared as the drought shriveled crops in much of the corn belt outside of Minnesota. But with no drought this year and a bountiful crop projected, prices have gone south.
Corn declined to a 34-month low Monday, according to Bloomberg News. Corn futures for December delivery fell 0.7 percent to settle at $4.61 per bushel on the Chicago Board of Trade. Soybean futures for November delivery closed at $11.80 a bushel, down 16 percent this year, Bloomberg reported.
The economic dynamics of the soybean market largely follow those of corn, Swanson said. Corn and soybeans are Minnesota’s largest crops.
Many farmers mitigate the risk of falling prices by purchasing futures contracts early in the year, locking in prices well before harvest. But Swanson said he’s noticed that farmers cut back on such hedging strategies this spring because prices ended up higher during the past few harvests.
“For the last three years they sold grain early and left lots of money on the table,” Swanson said. If prices stagnate at current levels, that problem won’t exist this year.
Mike Hughlett • 612-673-7003