The averages are an important piece of price discovery that underpins many crop insurance policies, which use the higher of either the harvest price or the spring projected price to calculate indemnity payments. The projected prices are an average of the new-crop futures contracts’ closes during February. They came in at $5.91 per bushel of corn and $13.76 per bushel of soybeans.
“For corn, this breaks a three-year streak of higher corn prices at harvest.”
Yesterday’s article noted that, “DTN Lead Analyst Todd Hultman said the deterioration of corn prices over the growing season will likely trigger payments on 85% coverage policies without a yield loss. At lower coverage levels, which usually range between 70%-80%, farmers will also likely need a yield loss to trigger a payment.”
Elsewhere, in its monthly Agriculture Prices report yesterday, the USDA’s National Agricultural Statistics Service (NASS) highlighted prices received by farmers in September, and stated that, “The corn price, at $5.21 per bushel, is down 52 cents from last month and $1.88 from September 2022.”
Source: farmpolicynews.illinois.edu
Photo Credit: gettyimages-fotokostic.
Categories: Illinois, Harvesting