Tight Soybean Supplies Lead to Price Volatility While Ample Corn Stocks Keep Prices Stable

Lower corn and soybean yield estimates from USDA led to price increases, but the soybean price reaction was much larger than corn. This shows differing market conditions.

The corn market is adequately supplied with stable, comparatively low prices. The soybean market is tight with high, volatile prices.

The corn stocks-to-use ratio remains historically high at 14.7%. Soybean stocks-to-use is tight around 5%. This explains the differing price reactions.

Corn futures prices have been stable between $4.70-$5.00/bu since summer. Soybean futures have fluctuated widely between $12.50-$14.00/bu.

Current market fundamentals suggest modest corn rallies but continued volatility in soybeans. Farmers must weigh risks of selling vs. storing.