Diesel Prices Soar as Minnesota Farmers Ride Corn and Soybean Rally

Farmers in Minnesota are benefiting from a recent surge in corn and soybean prices, which have reached some of their best levels in three years. The rally has been driven by tight supplies and strong demand, particularly from China, which has resumed purchasing soybeans from the US after boycotting them last year.

However, with diesel prices surging above $6 a gallon, profitability could take a hit for farmers. According to University of Minnesota crop economist Ed Usset, costs are up, but farmers should still be able to make money this harvest. 'It was nice to see a little bump in the markets,' said Jordan Goblish, who farms in southwest Minnesota, but added that his local prices haven't increased much.

The ongoing war between Russia and Ukraine has also boosted grain prices, as attacks on export ports have diminished their ability to supply the market. 'That impacts perceived availability of wheat and corn in the international market, and that really ignited things in the corn and wheat markets,' said Usset.