May 3

5/3 - Corn prices exploded in April, starting the month at $5.59 per bushel and finishing at fresh, 8-yr highs of $7.40 on Friday (4/30). Bullish price drivers keep piling up: lower-than-expected U.S. planting intentions, big Chinese purchases, weather problems in Brazil, and political issues in Ukraine. Corn prices had touched 4-year lows of $3.02 just a year ago. Soybeans are $15.71 per bushel vs. $8.50 a year ago; soy-oil $.6847per pound vs. $.2623. Live cattle are $116.00/cwt vs. $90.00 a year ago; hogs $110.12/cwt vs. $59.12. Granted, last year’s prices were Covid-depressed, but 2021 will still see multi-year highs in many commodity categories. In a normal year, high livestock prices would encourage producers to expand. But this year, feed costs and labor shortages are discouraging those ideas. Expect high prices and supply disruptions through at least September.