Grain Prices Rise Amid Conflict and Lower Yields

Higher grain prices are providing some relief for farmers as harvest approaches, but elevated input costs remain a concern. University of Illinois agricultural economist Gary Schnitkey attributes this trend to several factors. The ongoing Ukraine-Russia conflict is causing disruptions at ports, leading to increased commodity prices.

Another factor is the expectation of lower yields than previously forecasted by the USDA. Pro Farmer tours and other indicators suggest that corn and soybean yields may be down this year, which would reduce supply and drive up prices.

Schnitkey notes that producers are also looking ahead to next year's expenses, with fertilizer costs remaining high. Ammonia prices are in the high sevens, while DAP and potash remain expensive. As a result, Schnitkey projects record-breaking non-land costs for both corn and soybeans in 2027.

With grain prices moving higher, Schnitkey advises producers to reassess their marketing plans. This could involve adjusting their strategies or timing of sales to capitalize on the increased prices.