Farmers are feeling the sting of weakening corn prices, with their sentiment plummeting 19 points in May’s Purdue University-CME Group Ag Economy Barometer reading.
Now at 104, the survey of 400 farmers notched its lowest overall reading since July 2022. Both the Index of Current Conditions and the Index of Future Expectations also fell — tumbling by 13 and 22 points, respectively.
In mid-May, Eastern Corn Belt fall delivery bids for corn fell over $0.50/bushel (10%) and soybean bids declined over $1.00/bushel (8%), while new crop June/July delivery wheat bids declined nearly $0.50/bushel (8%) — all compared to bids available in mid-April when last month's barometer survey was conducted.
“Weaker crop prices compared to a month earlier combined with ongoing concerns about rising interest rates, high input prices, and even the possibility that recent U.S. bank failures could lead to changes in farm loan terms in the upcoming year all contributed to weak producer sentiment,” said James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture.
Farm Financial Performance Index
The Farm Financial Performance Index fell from 93 in April to 76 in May, its lowest reading included in data for the past 28 months.
Source: michiganfarmnews.com
Photo Credit: istock-primeimages
Categories: Michigan, Crops, Corn, Soybeans, Wheat