Grain Prices Surge Amid Supply-Driven Bull Market

Grain prices have seen significant changes this year, with corn up 34%, soybeans up 34%, wheat up 50%, and diesel fuel up 127% from last year.

Richard Brock, founder of Brock Associates and publisher of The Brock Report, notes that the market structure has changed since the end of June, making it necessary to adjust plans accordingly.

The shift in market dynamics is due to decreased yields, particularly in corn, which has led to a supply-driven bull market. Historically, such markets peak before or during harvest time, and Brock anticipates this trend will continue.

According to Brock, the cut in yields can be seen in the carrying spread of corn from December to July, which narrowed but is now back to 26 cents, indicating a strong basis through harvest time. This will impact areas with forecasted yield drops, such as Nebraska, Indiana, and South Dakota.