Lower Crop Prices Weigh on US Producer Sentiment

US farmer sentiment declined to its lowest in almost a year in May following a steep fall in crop prices. 

Released Tuesday, the Purdue University-CME Group Ag Economy Barometer Index - which is based on a monthly survey of 400 producers across the country - came in at a reading of 104 points in May, down 19 points from April. 

Crop price weakness helped trigger the sentiment decline, the barometer commentary said. Eastern Corn Belt fall delivery bids for corn fell over 50 cents/bu (10%) and soybean bids declined over $1/bu (8%) while new-crop June/July delivery wheat bids declined nearly 50 cents/bu (8%) in mid-May, all compared to bids available in mid-April when the April survey was conducted. The survey for the May barometer was conducted from May 15-19, 2023.