Grains fall to cheapest in 14 years versus other commodities

Grains futures are at their cheapest in 14 years relative to other commodities as the prospect for ample supplies weigh on prices. 

A gauge for contracts of soybeans, corn and wheat traded in Chicago and Kansas have plunged to the lowest valuation since 2010 relative to the other groups of raw materials in the Bloomberg Commodity Index. Corn prices on Monday tumbled to the lowest since October 2020.

Grains have been the weakest link in major US commodity markets this year. The move comes as Midwest farmers seem on track for a bumper harvest, with abundant rain and mild summer temperatures aiding crops and underscoring the outlook for ample global inventories. Also undermining prices, demand for US supplies has been slow, with outstanding export sales of corn and soybeans for delivery in the marketing year starting next month trailing the average for the past few years.

US farmers are poised to harvest roughly 15 billion bushels (381 million metric tons) of corn and a record 4.7 billion bushels of soybeans this year, according to an estimate released Friday by Pro Farmer after its annual crop tour.