Initial 2023 Illinois Crop Budgets have been revised to reflect lower corn and soybean price projections, dropping from $5.50 in December to $5 for corn, while soybean prices were lowered from $13.30 in December to $12.30.
Costs were also revised to reflect updated information. In general, our estimates of 2023 costs have increased since the earlier budget releases.
These budgets represent average returns regardless of the preceding crop and are summarized from farms enrolled in Illinois Farm Business Farm Management (FBFM).
Projected corn and soybean prices
Expectations of 2023 fall delivery prices have fallen in recent months. For example, settlement prices of the December 2023 Chicago Mercantile Exchange (CME) corn contract during the month of February resulted in a $5.91 per bushel projected price for corn. As of mid-May, it is trading at $5.10.
Similarly, the November CME soybean contract declined from $13.76 per bushel in February down to $12 per bushel in mid-May.
Several factors contributed to these price declines. Markets have seemingly adjusted to the ongoing Ukraine-Russia conflict. While Argentina has poor crop prospects due to severe drought conditions, Brazil is projected to have good production levels, with 2022-23 soybean production at record levels.
On May 8, the Office of the Chief Economist of the U.S. Department of Agriculture released its monthly World Agricultural Supply and Demand Estimates (WASDE) report. In this report, the first WASDE estimates of the 2023-24 supply and use sheets were released, which include estimates of the 2023-24 market year average (MYA) prices.
For corn, the 2023 MYA price is estimated at $4.80 per bushel, lower than the 2021 and 2022 MYA prices of $5.95 and $6.75, respectively (see Figure 1).
For soybeans, the 2023 MYA price is projected at $12.10 per bushel, down from 2021 and 2022 levels of $13.60 and $14.35, respectively.
Source: michiganfarmnews.com
Photo Credit: GettyImages-sinartcreative
Categories: Michigan, Crops, Corn, Soybeans