Farm Prices Rally on Chinese Demand, Disaster in Iowa

 

Things are looking up for farmers in Minnesota as harvest gets underway, thanks to a mix of increased demand from China and the misfortune of farmers in other states.

 

Corn and soybean prices are both up by about a fifth since early August and the hog rally has been even more pronounced.

 

“These prices, with these yields, should make things look financially much better than they did back during the summer, because it looked kind of bleak, really,” said Rick Anderson, risk manager for Goodhue, Minn.-based Ag Partners, which operates several grain elevators in southeast Minnesota and southwest Wisconsin. “When you combine that with some of the government aid that they’ve received and are projected to receive, that will help of course, too.”

 

The biggest reason corn and soybean prices have rallied is that China is purchasing more of them from the U.S. in recent weeks. Tuesday marked the 13th straight business day in which China bought U.S. soybeans.

 

“Their economy is rebounding from the pandemic is what we’re told, and more importantly their swine herd is rebounding from the African swine fever,” Anderson said.

 

Chinese demand for soybeans, in large part to feed hogs, makes the country the largest customer of U.S. soybean producers.

 

Minnesota’s corn and soybean crops are also well ahead of last year, and many farmers expect good yields. Meanwhile, Iowa’s crops were hit by drought and a severe storm called a derecho that flattened fields from Fort Dodge to Cedar Rapids in early August.

 

“The derecho that moved across a big swath of Iowa, that kind of grabbed everyone’s attention,” Anderson said.

 

When farmers in other states lose part of their crop, Minnesota farmers get better prices for their crop.

 

“What we thought was going to be a really big crop has gotten smaller,” Anderson said.

 

The Minnesota corn crop is 23 days ahead of last year and 10 days ahead of the five-year average, according to the U.S. Department of Agriculture. The soybean crop is 16 days ahead of last year and eight days ahead of the average.

 

In another bright spot for farmers, President Donald Trump announced last week that the federal government will spend another $13 billion on assistance to farms, in addition to the $19 billion in corona­virus relief announced in April.

 

Bryan Klabunde, who raises corn and soybeans near Waubun, Minn., said the price rallies offer a much-needed morale boost.

 

“Harvest is full speed ahead right now and it’s been a while since we’ve had any market movement in a positive direction,” Klabunde said. “It’s nice to see. It’s a positive thing that we needed.”

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.