Corn and Soybean Prices Soar Amid Declining Inventories and High Fertilizer Costs
Global corn and soybean prices may be entering a new growth cycle in 2027 due to declining inventories, high fertilizer costs, and increased demand from the biofuel industry. According to S&P Global, global stocks of corn, soybeans, and wheat have been decreasing since May, making markets more sensitive to weather-related problems and disruptions in key exporting regions.
Biofuel demand is driving up prices for soybeans, with Chicago soybean oil futures rising 7.2% over three trading sessions following US EPA decisions on future renewable fuel obligations. The December contract reached 72.63 cents/lb on September 1, while soybean futures climbed to their highest level in nearly three years.
High fertilizer and energy prices could support corn prices by encouraging US farmers to shift acreage toward soybeans, while Brazilian producers may reduce fertilizer application or planted area, leading to a decline in global exportable corn supplies in 2027.