FNC News

The 2024 harvest is in the bin, and the American Farmers have once again demonstrated their unparalleled productivity, reaffirming the United States’ position as the global leader in agricultural production. The soybean harvest was pacing for an all-time record yield up until a dry September pulled the national average yield down to 51.6 bushels per acre, just shy of the 2016 record of 52 bushels per acre. Corn yield of 183.1 bushels per acre demolished last year’s record of 177.3 bushels per acre. While the sheer scale of this year's harvest is undoubtedly impressive, the excitement is tempered by the sobering reality of declining prices. Corn and soybean prices have plummeted 20% from last year’s levels, squeezing profit margins from producers, underscoring the challenges of marketing grain in a low-price environment and highlighting the need for strategic risk management.

Despite the challenges posed by declining prices, the corn and soybean markets have received support from robust demand and strong export inspections. Corn and soybeans are both ahead of pace to meet USDA’s export projections. Actual export inspections for both commodities are exceeding last year’s pace, with current totals reaching the top end of the five-year range for export inspections at the time of year. With potential new tariffs on the horizon under the incoming administration, there is some concern that grain sales may be front-loaded to get ahead of this.

Grain markets continue to face pressure from factors all over the globe. South American delays in planting buoyed soybean markets initially this fall with drought conditions delaying planting. Recent rains have significantly improved conditions in Brazil, allowing them to completely catch up and even get ahead of the historical planting pace. Conflicts in Russia-Ukraine and the Middle East continue to present uncertainty for the grain and crude oil markets. This can lead to increased price volatility, which appears likely to continue.

As the 2025 grain marketing year unfolds, we continue to navigate the complex landscape with caution. While strong demand provides a boost for commodities, uncertainty surrounding global economic trends, tariffs, and interest rates will continue to provide challenges. With strategic risk management and timely grain marketing, we aim to capitalize on opportunities as they arise.

Grain marketing is included in FNC’s comprehensive suite of Farm Management services. If you have any questions or would like to speak with a representative, please reach out to us today.