U.S. corn and soybean prices may drop significantly in 2013 due to normalizing weather conditions, according to U.S. Department of Agriculture Chief Economist Joe Glauber, who spoke at the annual Agricultural Outlook Conference in Arlington, Va., the week of February 18.

According to Glauber, corn prices in 2013 will average $4.80 per bushel, down 33 percent, and soybean prices will fall to $10.50 per bushel, down 27 percent. “There’s no reason to believe that we won’t be looking at normal yields this year” because of recent improvements in dry conditions in the eastern corn belt, said Glauber. Lower prices won’t necessary benefit meat and poultry producers, however, until later in the year.

Advertisement

Planted acreage is expected to remain roughly the same, around 230 million acres. Corn acreage will drop 0.7 percent, while soybean and wheat plantings will increase slightly. Overall, the USDA is forecasting corn production to increase 35 percent to 14.5 billion bushels from the 2012 drought year, while soybean production will rise by 13 percent to 3.4 billion bushels.